Green hydrogen infrastructure developer H2U and mining and infrastructure services and materials provider Orica signed a memorandum of understanding to develop a facility to produce green hydrogen and green ammonia at Gladstone.

Under the agreement the two companies are to explore options for a green ammonia export terminal at the Port of Gladstone, leveraging the existing Orica ammonia storage capacity at the Fisherman’s Landing Wharf and the associated connecting infrastructure in the Gladstone State Development Area to facilitate large-scale exports.

The development, called H2-Hub Gladstone, will be an industrial-scale green hydrogen and ammonia production facility. The facility’s planned capacity is up 3 gigawatts of electrolysis and up to 5000 tonnes per day of green ammonia production.

The companies expect to use 100% renewable energy from new-build solar and wind resources in the Queensland region of the National Electricity Market.

H2U founder and chief executive officer Attilio Pigneri said securing participation from Orica is a vote of confidence in the project.

“We look forward to working with Orica, the Port of Gladstone, and the Queensland Government to establish Gladstone as a globally leading hub in the emerging green hydrogen and green ammonia export market, and to secure new long-term jobs and economic growth for Central Queensland,” Mr Pigneri said.

Queensland Acting Premier and minister for state development Steven Miles said commitments like this help to propel Central Queensland towards becoming a “clean energy powerhouse”.

“I can also announce today the Co-ordinator-General has declared the H2-Hub Gladstone a Co-ordinated Project,” Mr Miles said.

Minister for regional development and manufacturing and member for Gladstone Glenn Butcher said: “Being able to leverage off existing Orica ammonia storage capacity and the associated connecting infrastructure in the Gladstone State Development Area is an added benefit of this fantastic project.”

Orica president Australia Pacific and Asia Germán Morales said the partnership forms a critical milestone for the H2-Hub Gladstone project.

The master plan study will run for approximately six months with front-end engineering and development approval activities scheduled to commence at the back end of 2022.