Proposed H2-Hub Gladstone project in QLD estimated to create 550 jobs

A Memorandum of Understanding has been signed by Orica and The Hydrogen Utility (H2U) for a strategic partnership to deliver the first phase of the proposed H2-HubTM Gladstone project in Queensland. 

The proposed multi-billion-dollar chemical complex, which is set to produce green hydrogen and green ammonia, has been declared a Coordinated Project by the Coordinator-General. 

“Commitments like this help to propel Central Queensland towards becoming a clean energy powerhouse, as part of Queensland’s plan for economic recovery. 

“H2U and Orica today signed a Memorandum of Understanding on a master plan study to explore opportunities for an exclusive domestic green offtake and supply agreement. 

“The potential agreement would see green ammonia supplied directly to Orica’s Yarwun manufacturing plant from H2U’s proposed Yarwun green ammonia production plant,” Acting Premier and Minister for State Development Steven Miles said. 

The H2-HubTM Gladstone project is estimated to create more than 550 jobs during its construction phase as well as 190 ongoing operational jobs and about 1,900 indirect jobs. The project also has the potential to attract a $4.7 billion investment during its phased construction. 

In addition, the partnership between Orica and H2U will enable the two companies to explore opportunities for a potential green ammonia export terminal at the Port of Gladstone. 

“These partnerships are highlighting the benefits of investing into Queensland’s regions and creating jobs for the future. 

“Being able to leverage off existing Orica ammonia storage capacity and the associated connecting infrastructure in the Gladstone State Development Area is an added benefit of this fantastic project,” Minister for Regional Development and Manufacturing, Minister for Water and Member for Gladstone Glenn Butcher said. 

Minister Butcher added that H2U’s land purchase for its Yarwun facility was made possible through Economic Development Queensland (EDQ) – the State Government’s land use planning and property development agency. 

“This was a key step for the project, the State Development Area has the eco-system to deliver a project of this scale,” Minister Butcher said. 

The H2-HubTM Gladstone project has a planned capacity of about 3GW of electrolysis as well as up to 5,000 tonnes of green ammonia production a day. The facility is also anticipated to utilise 100 per cent renewable energy from newly built solar and wind resources in the region. 

According to Orica President Australia Pacific and Asia Germán Morales, the company has been in operation in Yarwun for over 30 years and will remain committed to ensuring the Yarwun facility along with the Gladstone region remain competitive in a lower carbon economy while, at the same time, creating more sustainable products for customers and opportunities across new industries. 

“This partnership forms a critical milestone for the H2-HubTM Gladstone project, and we look forward to working alongside H2U to define opportunities to progress the project and contribute to a more sustainable future for the region,” Mr Morales said. 

H2U Founder and Chief Executive Officer Attilio Pigneri said: “We look forward to working with Orica, the Port of Gladstone, and the Queensland Government to establish Gladstone as a globally leading hub in the emerging green hydrogen and green ammonia export market, and to secure new long-term jobs and economic growth for Central Queensland.” 

The master plan study will run for about six months while front-end engineering and development approval activities are due to begin later in 2022. 

On the other hand, the financial investment decision for the Activation phase of the project is scheduled by 30 June 2023. 

H2-HubTM Gladstone is expected to be operational in 2025 with a possible expansion to get underway between 2027-2030. 

Source: Queensland Government – Media Statements; Orica; Australian Mining