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 prime movers which Ark Energy will source from Hyzon Motors and lease to its sister company Townsville Logistics Pty Ltd. Our prime movers will 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.

As hydrogen moves from being a future fuel to an everyday fuel, there will be a need to establish hydrogen hubs with production and refuelling stations close to demand clusters.

Leveraging our experience on SunHQ, Ark Energy intends to roll out additional hydrogen hubs across Queensland (and potentially Australia) and become a major domestic hydrogen producer ahead of our ultimate goal of becoming a green hydrogen exporter.

SunHQ has received a A$5 million grant from the Queensland Government’s Hydrogen Industry Development Fund.

Target date for a Final Investment Decision on SunHQ is August 2021.