Mission 2050: how Townsville is becoming a global renewable energy hub

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Why Townsville is in a good position to capitalise on global demand

Townsville is known as the ‘capital of northern Australia’s for a reason. It has a desirable mix of climate, infrastructure and green energy projects that have propelled the area onto the world renewable energy stage.

Not only does Townsville have an abundance of world-class resources like sun and wind, it also has deposits of new economy minerals like vanadium. It’s enviably positioned with the deep-water Port of Townsville already considered to be one of Australia’s most important trading ports for the Asia-Pacific.

There are already a number of significant renewable energy projects operating in and planned for the Townsville region.

Townsville Enterprise CEO Claudia Brumme-Smith said the region was primed and ready to lead the charge for renewable energy production and export.

“We have over $740 billion in potential traditional and new economy mineral projects in the North West Minerals Province, state government funding for the first vanadium processing plant in the country, battery metals processing and manufacturing plants making progress at the Landsdown Eco-industrial Precinct, and proponents pushing ahead with the enabling infrastructure like CopperString 2.0 and the Hells Gate Dam pumped hydro project,” Ms Brumme-Smith said.

“North Queensland is already doing the heavy lifting when it comes to the renewable revolution and decarbonisation, and we have no plans to slow down.”

A new economy needs new minerals and metals

New and emerging technology like electric vehicles, consumer devices and renewable energy infrastructure will require Queensland to mine for a new range of metals and minerals, like vanadium.

Vanadium will have important role to play in Queensland’s green energy future. Vanadium batteries can store large amounts of energy over long periods of time, making them perfect for solar and wind farms, as well as backup energy supplies. Australia has one of the world’s largest reserves of vanadium, but currently doesn’t process the mineral locally. With areas around Townsville hosting extensive vanadium mineralisation, the region could be become the centre of a whole new supply chain for the state, as new projects get set to take advantage of the opportunity to lead the country in mining and processing vanadium.

Richmond Vanadium Technology has plans to develop one of the first mines to produce vanadium near Richmond in north-west Queensland. This follows the green light given by the Queensland government to the Saint Elmo Project, which will establish a vanadium mine near Julia Creek, creating hundreds of new jobs throughout the construction and operation periods.

Mining Queensland’s vanadium sets up the opportunity to also process the material within the state. The Queensland government has committed $10 million towards constructing a common-user vanadium processing facility in Townsville, which will allow multiple small mining operations to process the metal. This could kickstart the beginnings of a supply chain that sees vanadium batteries produced within the state, for use in our energy grid and for export to overseas markets, as well as the export of processed vanadium.

Already looking to take advantage of the benefits of vanadium batteries that could soon be made within the state, Energy Queensland is trialling network-connected battery storage. These batteries will allow the state to use renewable energy in a smarter way, able to store energy garnered from Queensland’s rooftop solar for use when and where it’s needed.

How will hydrogen play a key role in a renewable future for Townsville?

Ms Brumme-Smith recognises the importance of hydrogen in Townsville’s economic future.

“Hydrogen is going to reshape the global politics of energy over the coming decade, so we see this as imperative for local, state and the federal governments to get behind and support,” she said.

“North Queensland is on track to become one of the lowest cost green hydrogen producers by the end of the decade, with the world’s best wind and solar resources, a skilled high-tech workforce and access to world-class export infrastructure in the Port of Townsville.”

In a ground-breaking move, The Port of Townsville and Ark Energy signed a Memorandum of Understanding in September 2021 that could see 120,000 tonnes of renewable hydrogen shipped to South Korea within the decade. This partnership will also provide a great catalyst for other projects.

Ark Energy Chief Executive Officer Daniel Kim said the initial goal is to build North Queensland’s domestic hydrogen economy by supporting fleet owners’ transition away from diesel to zero emission hydrogen fuel cell commercial vehicles, which can be refuelled at the SunHQ Hydrogen Hub in Townsville.

“Ultimately our goal is to export green hydrogen to customers in Asia starting with our parent company, Korea Zinc in South Korea whose hydrogen demand could be as high as 200,000 tonnes per annum,” Mr Kim said.

This announcement comes off the back of Origin Energy’s export-scale liquid hydrogen project reaching an important milestone in April last year. This included the signing of Memorandum of Understanding with the Port of Townsville to collaborate on the potential expansion, as well as the development of a liquefaction facility, new berth and associated infrastructure.

Origin is collaborating with Japan’s Kawasaki Heavy Industries Ltd (KHI) on a 300MW early export project that would produce 36,500 tonnes per annum of green liquid hydrogen using renewable energy and sustainable water. The first exports from the project are targeted for the late 2020s.

A feasibility study to investigate a renewable hydrogen facility at Sun Metals’ zinc refinery, located 15 kilometres South of Townsville, along with export facilities at the Port, is also underway with the assistance of $5 million Hydrogen Industry Development Fund grant.

Port of Townsville Chief Executive Officer Ranee Crosby said Townsville, with its deep-water port and proximity to Asia, has a strategic edge to become a global hub for producing and exporting hydrogen – the energy of the future.

“We believe Townsville is well placed to be at the forefront of this energy revolution, which will also boost our economic development, create new jobs and substantially reduce our carbon emissions,” Ms Crosby said.

Hydro and batteries to store Townsville’s renewable energy

With ten solar farms either in operation or under development and a vast supply of both dam and waste-water, Townsville has capitalised on the full cycle with multiple energy storage technologies in place.

Genex has commenced construction works at the former Kidston gold mine which is set to become the world’s first co-located solar and pumped storage hydropower plant. The 250 MW Kidston Pumped Storage Hydro Project is located 270 km northwest of Townsville and will be the first pumped hydro power station to be built in Australia in almost 40 years.

When finished, the project will create a storage battery that will have capacity to power 280,000 households and will supplement the current power supply through the North Queensland energy grid. It is expected to be operating by 2024.

Iron flow batteries enable large amounts of power to be stored on industrial sites for use during peak loads or during renewable energy down times – particularly important in North Queensland with hotter conditions.

Sword and Stone is proposing to fast-track an iron flow battery manufacturing facility with a demonstration plant currently under development on Magnetic Island. It is expected that local manufacturers will initially supply 80 percent of the battery components.

High voltage network a game-changer for linking power production facilities

CopperString 2.0, the proposed high voltage network extending the national grid from Townsville to Mount Isa, and the North West Minerals Province, will be essential to power North Queensland’s renewable energy potential and a game-changer for Townsville.

Speaking at a Hydrogen Working Group meeting in Townsville mid last year, CopperString 2.0 Executive Chairman Mr John O’Brien, said the company’s 1000 km high voltage transmission network project and its infrastructure corridor would link Australia’s best solar and wind production facilities with hydrogen production facilities in Townsville to create a world-leading hydrogen export hub.

“The CopperString corridor between Townsville and Mount Isa has the best wind and solar resources in Queensland to fuel the development of a ‘green’ hydrogen industry, and decarbonise the emerging critical minerals mines in North West Queensland.”

“Unlike other regions North Queensland has an abundance of water, all the key ingredients for our state’s continuing decarbonisation through hydrogen.”

New eco precinct is a renewable energy and jobs hub in Townsville

In September last year the Townsville City Council gave the tick of approval for the first development application for the Lansdown Eco-Industrial precinct, for a green hydrogen production plant.

The precinct will create around 800 construction jobs and its operational phase will deliver an estimated 1700 jobs, including 300 highly-skilled advanced manufacturing roles at the facility and 1400 in support industries.

Edify Energy Chief Executive Officer John Cole said the Lansdown Eco-Industrial Precinct represented a future vision of Australian industry and energy.

“We’re very pleased to be a leading player in the establishment of Lansdown, a blueprint for new-age, environmentally sustainable industrial ecosystems” Mr Cole said.

“We look forward to working with local businesses, contractors, and suppliers and other stakeholders to make the Edify Green Hydrogen production plant and the Lansdown Eco-Industrial Precinct a success. We will continue to innovate and develop solutions that meets the needs of energy markets and industry.”

In November 2021, Edify Energy signed a MOU with the Port of Townsville with intentions to export hydrogen from the outer harbour by 2030.

Queensland Pacific Metals has also signed up to establish themselves at the precinct with plans to produce battery-grade nickel and cobalt sulphate from nickel-cobalt ore.  Elements which are in demand for future electric vehicles and modern technology equipment.

How is the state government supporting the opportunities available in the renewable energy sector?

Driving the development of Queensland’s new and emerging priority industries, like hydrogen, is a key focus of the Department of State Development, Infrastructure, Local Government and Planning.

According to Mike Kaiser, Director-General the Department of State Development, Infrastructure Local Government and Planning, that supports comes in many forms, like the $2 billion Renewable Energy and Hydrogen Jobs Fund, part of the $3.34 billion Queensland Jobs Fund and the $145 million put towards establishing three Queensland Renewable Energy Zones.

“Townsville is, and will continue to be, a key piece of the renewable energy puzzle in Queensland with new economy minerals, hydrogen, solar, wind and pumped hydroelectric storage all playing an important role in meeting Queensland’s renewable energy targets.”

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