Hydrogen Hubs Powering Remote Communities (H2H) (Archived)

Hydrogen Hubs Powering Remote Communities (H2H)

A feasibility study is investigating the development of two hydrogen hubs where renewables-based hydrogen production supports both energy generation and transportation end-use purposes.

Main proponents: Ergon Energy Corporation Ltd	Main end-use classification: Microgrid – power use	Status: Archived	Estimated cost:
Other involvement:	Production details: Under evaluation	Location: Queensland, Australia	Announced funding: AUD$546,720 – Federal Government Regional and Remote Communities Reliability Fund (Round Two Award)

Project description

Ergon Energy is a subsidiary company of Energy Queensland Limited, a Queensland State government-owned corporation (state-owned power companies Ergon and Energex became Energy Queensland when they merged in June 2016). It distributes electricity to over 700,000 customers across regional Queensland.

A study is investigating the feasibility of developing two hydrogen hubs in remote communities of North Queensland where local renewable energy generation sources can support the production of hydrogen to be used in energy generation and transportation (both road and sea) uses.

The two proposed hubs are Thursday Island, Bamaga and Horn Island and Palm Island, Magnetic Island and Townsville.

This purpose of the study is to prepare a report proposing an appropriate microgrid for supporting the remote communities. The study will investigate four main areas:

• Hydrogen Hubs: the technical solution of fuel substitution to hydrogen
• The customer and community
• The business models, and
• The transformation plan.

The feasibility study is anticipated to be completed in 2024.

Key project updates during 2023 included:

• Finalised research into hydrogen technical requirements in terms of hydrogen production, hydrogen equipment sizing, and hydrogen transportation requirements and limitations for various remote communities.
• Engaged a consultant to assist in determining:
  • The development approval and safety/engineering compliance requirements for testing hydrogen technologies at the Cairns test facility.
  • Development of a concept level hydrogen micro-grid design for an example remote location, including:
    1. Applicable specifications/standards/regulations
    2. Approvals pathway
    3. Safety in design pathway
    4. Risk management plan
    5. Required skills and training
    6. Project execution schedule/milestones

• Investigating renewable generation options for the production of green hydrogen in remote communities, including land acquisition, renewable resource availability and environment and cultural heritage considerations.

The project proponent has advised that the feasibility study into the use of hydrogen technologies in its isolated networks is completed, and that key learnings included a detailed analysis of the considerations for integrating hydrogen technologies into its business, such as safety, operations, maintenance, training, and design criteria.  The feasibility study found the current state of market maturity and technology readiness is not at the level where it is fit-for-purpose or practical to implement into the project proponents isolated networks. The project proponent will continue to monitor technology development and market growth as the hydrogen industry grows.

 

Reviewed: July 2024