Proposed Townsville Region Hydrogen Hub in Queensland faced a major setback in 2026 after developer Edify Energy placed it on hold and subsequently shelved the project. This is despite being one of Australia’s flagship regional hydrogen projects when it secured Federal funding in early 2024. The project stalled after Edify was unable to secure sufficient customer demand (offtake) to underpin investment. This prompted Edify to shift its immediate focus in North Queensland toward its Majors Creek and Ganymirra solar-plus-storage developments.
Townsville City Council has also confirmed that land previously earmarked for the hydrogen facility at the Lansdown Eco-Industrial Precinct is expected to be reallocated to other proponents. However, the project’s development approvals and earlier government funding commitments remain in place.
The shelving of Edify’s Townsville Region Hydrogen Hub project reflects the broader challenges currently facing Australia’s green hydrogen industry. This is as several projects get delayed or restructured. Major reasons for this include high capital costs, weak hydrogen demand and financing uncertainty. Despite this, others such as Orica’s Hunter Valley Hydrogen Hub in New South Wales continue to pick up pace toward construction and commissioning.
Townsville Region Hydrogen Hub (Edify Green Hydrogen Project) Factsheet
Location: Lansdown Eco-Industrial Precinct, approximately 40-50 km south of Townsville, Queensland
Status: Development stalled as of 2026. Project approvals remain in place.
Developer: Edify Energy
Technology Partner: Siemens Energy
Primary Technology: Electrolysis powered by co-located solar PV and battery energy storage
Initial Electrolyser Capacity: 17.6 MW
Long-term Planned Capacity: Up to 1 GW
Initial Hydrogen Production: Approximately 800 tons annually
Domestic Expansion Target: Approximately 3,000 tons annually
Export Target: More than 150,000 tons annually
Estimated Project Value: More than A$137 million (Stage 1)
Government Funding:
- Up to A$70 million through the Australian Government Regional Hydrogen Hubs Program
- A$48.2 million awarded directly to Edify Energy
- A$20.74 million through the Australian Renewable Energy Agency (ARENA) under the Australian-German HyGATE initiative
- Additional funding from the German Government and industry partners
Original Timeline:
- Construction: 2025
- Completion: 2026
- Commercial operations: 2027
Employment:
- Around 200 construction jobs
- Approximately 300 ongoing operational and technical jobs (planned)
Key Supporting Infrastructure:
- Lansdown Eco-Industrial Precinct
- Port of Townsville
- CopperString transmission project
Edify to Build Queensland Green Hydrogen Hub
Reported February 3, 2024 – Australian renewables developer Edify Energy has obtained a USD 31.8 million grant in funding, from the federal government to lead the development of the first phase of its up to 1-GW hydrogen hub in the north Queensland city of Townsville as it takes advantage of growing global demand for green hydrogen.
According to a statement issued by Edify, the financing will be extended under the Australian government’s Regional Hydrogen Hubs programme and will support the initial 17.6-MW part of the ambitious scheme.
Edify Energy will spearhead the development of the Townsville Region Hydrogen Hub after being named as the recipient of USD 46.3 million in funding allocated by the Australian government to support projects that accelerate the delivery of a green hydrogen industry in north Queensland.
Townsville Region Hydrogen Hub Location
The renewables developer will install a 17.6 MW demon facility within the Lansdown Eco-Industrial Precinct, about 50 kilometres south of Townsville, close to a proposed solar park and a battery energy storage system.
Impacts of the Project
The hydrogen plant will source electricity from the nearby photovoltaic farm to generate about 800 tonnes per year initially, starting in 2025. The output is planned to be used for industrial purposes. The federal government has estimated that the Townsville hydrogen hub will create about 200 direct jobs, as well as 300 ongoing jobs.
Construction of the Townsville green hydrogen hub which will co-locate producers and users of hydrogen, is due to start next year and be complete in 2026, with commercial operations scheduled to commence in 2027.
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Townsville Region Hydrogen Hub: Project Capacity and Output
Development approval for the Tonswville project that was awarded in September 2021 is now in the initial stage of supporting the production of 800 tonnes of green hydrogen per year, before ramping up to about 3,000 tonnes per annum for domestic supply with a view to scaling up production to 150,000 tonnes per year for foreign markets.
Talks are at advanced stages to secure off-takers across power generation, heavy industry and transport according to Edify.
The Australian Energy Minister Chris Bowen highlighted that renewable hydrogen shapes as a “game changer” for the country’s economy, opening the door to green metals, green fertiliser, green power and supporting industrial decarbonisation.
Strategic Regional Position
He also added that the Townville region is perfectly positioned to take advantage of the growing global demand with its infrastructure, workforce capacity, and proximity to Asian trading partners making it an ideal location for a green hydrogen hub. Townsville is ideally placed to help power the world with Australian renewable energy and create jobs in regional Australia, with its ports, expertise in exports and access to Queensland’s abundant solar resources.
Source of Hub Funding
More than USD 137 million of combined investment has been attracted by the Townsville hydrogen bub, including USD 20.7 million from the Australian Renewable Energy Agency. Funding is also being sourced from industry and the German government.
The Australian government’s contribution is part of more than USD 500 million in Commonwealth funding for hydrogen hubs in regional centres such as Gladstone, Bell Bay, Kwinana, the Pilbara, Port Bonython and the Hunter.
The investment will help unlock the benefits of an industry which could inject an additional USD 50 billion into the Australian economy by 2050, according to Anthony Albanese, the Australian Prime Minister.
About Edify
Edify has been at the forefront of the Australian renewable and green tech market. The company’s presence stretches across Australia, from Sydney, Melbourne and Brisbane to Townsville, Collinsville, Kerang and Darlington Point. Edify has reshaped the domestic renewables sector and disrupted outdated industry models. We’ve built relationships and financed projects in unique and innovative ways.
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