SunHQ Hydrogen Hub

Ark Energy’s first hydrogen hub, called ‘SunHQ’, will be located within a major industrial precinct at the Sun Metals zinc refinery in Townsville, North Queensland.

Phase 1 of SunHQ will involve a 1MW PEM electrolyser which will produce green hydrogen from a behind-the-meter connection to the co-located 124MWac Sun Metals solar farm. Compression, storage and refuelling facilities will be located adjacent to the electrolyser.

The initial demand use case will be five 140 tonne rated hydrogen fuel cell electric trucks (FCETs) which Ark Energy will source from Hyzon Motors and lease to its sister company Townsville Logistics Pty Ltd. Our FCETs are expected to be the largest fuel cell trucks in the world, displace five existing diesel prime movers and avoid 1,300 tonnes of CO2 emissions every year.

Even in Phase 1 of SunHQ, there will be additional capacity for Ark Energy to supply green hydrogen to third-party customers including owners of short haul fleets running back to our base at SunHQ.

As the hydrogen cost curves come down and demand increases, Ark Energy plans to scale quickly as part of Phase 2 and can expand the electrolyser capacity of SunHQ up to 150MW. We will also explore opportunities to build additional hydrogen hubs in Queensland.

SunHQ has received a A$5 million grant from the Queensland Government’s Hydrogen Industry Development Fund as well as a A$3.02 million grant from the Australian Renewable Energy Agency (ARENA). The Clean Energy Finance Corporation (CEFC) has committed up to A$12.5 million to support Ark Energy deliver SunHQ. SunHQ is the first hydrogen project to be jointly supported by ARENA and CEFC.

A Final Investment Decision on SunHQ was made in August 2021.