Ark Energy has officially broken ground for the construction of its SunHQ Hydrogen Hub within the Sun Metals precinct in Townsville.

SunHQ will be one of the largest fully integrated green hydrogen production and refuelling facilities in Australia.

“We are thrilled to celebrate the start of construction for SunHQ,” Ark Energy chief executive officer Daniel Kim said.

“We’re excited about the catalytic potential of SunHQ to build the domestic hydrogen economy of north Queensland and bring forward the decarbonisation of Australia’s ultra-heavy transport sector by several years.

“We have deliberately oversized the capacity of SunHQ to ensure there is surplus green hydrogen to support other major industrial customers achieve their emissions reductions targets.”

SunHQ will feature a 1 MW polymer electrolyte membrane (PEM) electrolyser that will produce green hydrogen from a behind-the-meter connection to the co-located 124 MW Sun Metals solar farm.

The facility will have a production capacity of 155 tonnes of green hydrogen per annum.

About 90 tonnes of this will be used to power five 140 tonne-rated Hyzon Motors fuel cell electric trucks (FCET) to be leased by Ark Energy to its sister company, Townsville Logistics.

These FCETs, expected to be the largest of their kind in the world, will be used to transport zinc concentrate from the Port of Townsville to the Sun Metals zinc refinery and finished zinc ingots from the refinery to the port.

“Decarbonising heavy transport is a key part of reducing our emissions, and green hydrogen provides an important option where electrification can’t be utilised,” Clean Energy Finance Corporation (CEFC) chief executive officer Ian Learmoth said.

“Ark Energy is to be congratulated on its leadership in the hydrogen sector with SunHQ contributing to reducing emissions and supporting the reduction of carbon in the zinc supply chain.”

It is anticipated that the production and testing of green hydrogen from SunHQ will start in the first quarter of 2024, with the first FCET expected to be delivered by mid-year.

The SunHQ project has been supported with funding of up to $8 million from the Queensland Government’s Hydrogen Industry Development Fund.

It has also received a $3.02 million grant from the Australian Renewable Energy Agency (ARENA) and is being supported by a $12.5 million debt finance facility from the CEFC.

Resources Minister and Member for Townsville Scott Stewart described the Ark Energy project as great news for the Townsville community.

“Stage 1 of the SunHQ Hydrogen Hub is just another example of how the Palaszczuk Government is supporting new and emerging industries in north Queensland,” he said.

Image at top of page: Artist impression of the SunHQ Hydrogen Hub – aerial view.