Construction is due to start next year on a Townsville hydrogen hub, led by Edify Energy, with $70 million in Federal backing announced today.

The project involves more than $137 million of combined investment, with funding also being sourced from industry and the German government.

It will see the deployment of a 17.6 MW Siemens Energy electrolyser with 21 MW solar PV integrated behind the meter to produce renewable hydrogen for domestic industrial and transport applications.

“The global shift to clean energy and decarbonised economies is a huge economic opportunity for North Queensland,” Prime Minister Anthony Albanese said.

“We are determined to grasp this opportunity and are investing half a billion dollars into regional hydrogen hubs all around Australia.”

Related: Hydrogen hubs agreement delivers $69m for Gladstone

The government expects the Townsville project to create at least 200 direct job opportunities for people such as local electricians, plumbers, fitters and concreters during construction, as well ongoing jobs in technical and engineering roles.

The initial stage of the hub will produce 800 tonnes of green hydrogen per year, enough to fuel more than 40 heavy vehicles a year.

It is expected to ramp up to about 3000 tonnes for domestic supply, and ultimately in excess of 150,000 tonnes for export.

Related: Funding win for NQ green hydrogen project

Townsville Enterprise chief executive officer and North Queensland Hydrogen Consortium chair Claudia Brumme-Smith described it as a big day for the industry and for the Townsville economy.

“This announcement will act as the catalyst for our region and nation – capitalising on our region’s strengths in wind, solar, and land and diversifying our industrial portfolio to be the energy producer of the future to spearhead the national energy transition, enabled by projects such as this and, of course, CopperString,” she said.

“The Lansdown Eco Industrial Precinct, with today’s funding announcement, is one step closer to becoming a world-leading energy hub.

“I am very proud to say the funding application was delivered as a true ‘whole of hub’ application in partnership with Edify Energy, Siemens Energy, James Cook University, Australian Institute of Marine Science and NQH2.

“It has secured our future, with construction to commence in the next 12 months.”

Construction is expected to be complete in 2026, with initial commercial operations scheduled to start in 2027.

The project is the first stage of a planned 1 GW green hydrogen production facility to export hydrogen globally through the Port of Townsville.

Edify Energy chief executive officer John Cole said being at the vanguard of what would be a world-class hydrogen hub in Townsville was incredibly motivating. 

“Today is a watershed moment for Townsville. There are parallels with the renewable electricity sector from 20 years ago,” he said.