Hydrogen Hubs Powering Remote Communities (H2H)

October 20th, 2022

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


Under development – feasibility study

Estimated cost:


Other involvement:


Production details:

Under evaluation


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 as of October 2022 include:

  • Conducted a market scan of available technologies, including several knowledge shares with hydrogen users, producers and technology manufacturers.
  • In discussions with a Queensland-based organisation regarding the testing of their system at the proponent’s Microgrid and Isolated Test (MIST) facility in Cairns. This would provide information regarding how the technology operates and its suitability for use in remote locations.
  • Completed a hydrogen generation and storage optimisation study to determine the best generation and hydrogen storage solutions to achieve several staged scenarios (base case, 50%, 80% and 100% renewable fraction). This information would be used to determine high level land requirements and costs


Updated: October 2022