The Expanding Hydrogen Energy Market in Queensland

Queensland is making significant strides in developing its hydrogen energy sector, fueled by substantial investments and strategic initiatives aimed at positioning the state as a global leader in clean energy.

Development and Strategic Investments

The Queensland government has been actively supporting the growth of the hydrogen industry through the Queensland Hydrogen Industry Strategy and the Hydrogen Industry Development Fund. These initiatives focus on accelerating the development of hydrogen projects across the state, spanning production, storage, transportation, and various domestic applications. The state’s commitment is reflected in the more than $300 million invested since 2019, which has propelled over 60 hydrogen projects​(

Department of Energy and Climate).

Key Projects and Investments

Several high-profile projects highlight the dynamic expansion of Queensland’s hydrogen industry:

• Hydrogen Park (HyP) Gladstone: Funded with up to $2.72 million from the Queensland Government, this project by Australian Gas Networks Limited (AGN) involves building a renewable hydrogen production facility. It will conduct a gas-blending trial to deliver a blend of up to 10% hydrogen to approximately 770 homes and businesses in Gladstone, marking a first in Australia for such a widespread application​.
• SunHQ: Ark Energy is establishing a renewable hydrogen production and refuelling facility at the Sun Metals refinery in Townsville, supported by up to $8 million from the state government. This project will produce hydrogen through electrolysis, fueling a trial of hydrogen fuel cell electric trucks and supporting refinery operations.
• GH2BUS and Goondiwindi Hydrogen: These projects demonstrate the versatility of hydrogen applications, from powering bus fleets to enhancing wastewater treatment efficiency.

Market Forecast and Economic Potential

The global demand for clean hydrogen is projected to grow significantly, with Queensland poised to play a crucial role in this expansion due to its robust policy support and strategic investments. The local production of hydrogen not only caters to domestic needs but also positions Queensland as a major player in the international hydrogen market. By 2030, the Australian hydrogen industry could be worth $3 billion annually, creating substantial economic and employment opportunities, particularly in regional areas​.

Hydrogen Industry Development Fund

The Hydrogen Industry Development Fund is a pivotal initiative by the Queensland Government aimed at accelerating the development and commercialization of hydrogen projects within the state. This fund is part of Queensland’s broader strategy to establish itself as a leader in the global green hydrogen market. Here are some key aspects of the fund:

• Purpose and Goals: The fund is designed to support projects that advance the hydrogen industry in Queensland, including production, storage, distribution, and end-use applications. Its main goals are to stimulate investment, drive technological innovation, and create jobs, particularly in regional areas.
• Investment Focus: The fund allocates financial resources to a variety of projects that demonstrate the potential for commercial viability and sustainability. These projects range from infrastructure development to pilot programs for emerging hydrogen technologies.
• Impact and Outcomes: Projects funded by this initiative have the potential to significantly enhance the hydrogen supply chain and infrastructure in Queensland. For example, projects like Hydrogen Park in Gladstone and the SunHQ in Townsville are already setting benchmarks for how hydrogen can be integrated into existing energy systems and industrial processes.

The Hydrogen Industry Development Fund is a cornerstone in Queensland’s strategy to harness its renewable resources and technological capabilities to foster a thriving, sustainable hydrogen economy. This initiative not only supports local innovation but also positions Queensland as an attractive destination for both national and international investments in the burgeoning hydrogen sector.

Queensland’s hydrogen energy sector is set for considerable growth, driven by government backing, strategic partnerships, and pioneering projects. These efforts align with global trends towards decarbonization and establish Queensland as a future leader in the renewable hydrogen industry. The continued development and expansion of this sector will likely yield significant environmental and economic benefits, reinforcing Queensland’s status as a green energy powerhouse.

Mexi Consulting can offer significant support to clients looking to invest in the burgeoning hydrogen industry in Queensland. Here’s how they can help:

• Strategic Guidance: Mexi Consulting can provide strategic insights and guidance on navigating the regulatory and economic landscape of Queensland’s hydrogen market. This includes analyzing market trends, identifying investment opportunities, and understanding government incentives such as the Hydrogen Industry Development Fund.
• Investment Facilitation: Mexi Consulting can assist in identifying potential investment opportunities, facilitating connections with industry stakeholders, and providing due diligence to ensure that investments are sound and align with both market potential and regulatory requirements.
• Project Development: For clients interested in developing hydrogen projects, Mexi Consulting can offer project management support, from the initial feasibility studies through to execution. This includes assistance with securing funding, navigating local planning regulations, and project commissioning.
• Government and Regulatory Engagement: Mexi Consulting can help in liaising with government bodies and regulatory agencies to ensure compliance with local laws and to maximize available government incentives and support programs.
• Partnership and Network Building: Leveraging its extensive network, Mexi Consulting can connect clients with potential partners, suppliers, and customers within the hydrogen industry ecosystem in Queensland, enhancing the project’s viability and market reach.
• Market Entry and Expansion Strategy: For businesses new to the Queensland market or looking to expand their presence, Mexi Consulting can develop tailored market entry and expansion strategies. This includes market analysis, competitive analysis, and strategic planning tailored to the hydrogen sector.

By providing these comprehensive services, Mexi Consulting ensures that its clients are well-positioned to capitalize on the growth opportunities within Queensland’s hydrogen industry, fostering successful investments and sustainable business practices.