A further two regional hydrogen hubs – essential to reaching Labor’s unrealistic climate targets – have collapsed, official new data has confirmed.

According to returned Opposition Questions on Notice from Senate Estimates, the Queensland Townsville hydrogen hub will “not be proceeded with.”

The Townsville project was announced by the Prime Minister and Energy Minister Chris Bowen in January 2024, with Edify Energy as the proponent.

Prime Minister Albanese promised the project would “create at least 200 direct jobs” and “produce 800 tonnes of green hydrogen per year, enough to fuel over 40 heavy vehicles a year.” According to Bowen’s Department, the project fell apart because EdIfy Energy had been “unable to secure sufficient financial support and customer offtake agreements.”

The original Commonwealth investment was “up to” $70 million. Edify Energy has only repaid $1,135,746 of the original $2,197,075 it received upon the grant’s execution, leaving taxpayers out of pocket by at least $1,061,329.

In addition to the collapse of the Townsville hub, Bowen’s Department has also confirmed that the West Australian Kwinana hydrogen hub has also fallen over.

The project, H2Kwinana Hydrogen Hub, was jointly announced by Ministers Bowen and Madeline King in November 2023. bp Australia was the lead proponent for the $70 million project.

Labor claimed the Kwinana project would create 150 jobs and produce over 14,000 tonnes of green hydrogen. The project was expected to be in operation by mid-2027. To date, over $31 million has been paid by the Commonwealth to the proponent.

Shadow Minister for Energy and Emissions Reduction Dan Tehan said Labor’s Net Zero agenda was delivering the cheap and affordable energy Australia requires.

“The axing of the Townsville and Kwinana hydrogen hubs is yet another hammer blow to Labor’s faltering green dream,” Mr Tehan said.

According to the Government’s National Hydrogen Strategy 2024, Labor had planned Australia would produce up to 1.5 million tonnes of hydrogen by 2030.

ENDS

Media contact: Phil Connole M | 0417 063 605