Three Korean conglomerate groups have established a new Consortium to unleash Queensland’s hydrogen potential and build a green energy export route from North Queensland to Korea.
The Memorandum of Understanding (MoU), which will formally establish the Han-Ho Hydrogen Consortium and create a supply chain to export over 1 million tonnes of green ammonia annually from Australia to Korea by 2023, was today signed in the presence of Premier Annastacia Palaszczuk.
The Consortium comprises the Korean companies Hanwha Impact, SK Gas, and Australian company Ark Energy and its parent company Korea Zinc.
The development of Ark Energy’s Collinsville Green Energy Hub southwest of Bowen, which will have the capacity to produce up to 3,000MW, will be at the centre of the Consortium’s plans.
Premier Palaszczuk said it is another step towards Queensland’s pursuit to be a hydrogen powerhouse.
“We welcome this major new Consortium to Queensland — to accelerate progress in our green hydrogen industry and advance green energy exports to Korea. Korea is Queensland’s third-largest two-way trading partner and one our largest sources for foreign investment,” the Premier stated.
The Premier added that the largest producer of zinc in the world, Korea Zinc, has long been a significant part of Queensland’s regional economy and, through the Sun Metals Corporation, is the largest employer in North Queensland’s private sector.
“Now, its subsidiary Ark Energy is not only helping Korea Zinc to decarbonise and produce green zinc — it’s transforming North Queensland into a hydrogen powerhouse. Through this new Consortium, Ark Energy brings Korea Zinc together with Hanwha Impact, a major petrochemicals company in Korea and SK Gas, which holds the largest market share of the Korean domestic LPG market,” the Premier said.
The Premier added that by signing the MoU, the companies express their intent to create opportunities for green hydrogen and ammonia production in North Queensland, which will result in more local jobs and investment,
Since the Queensland Hydrogen Industry Strategy was introduced in 2019, according to Minister for Energy, Renewable and Hydrogen Mick de Brenni, the Palaszczuk Government has been striving to advance Queensland’s clean hydrogen export industry.
“Queensland is a proud resource State, powered by tens of thousands of highly skilled technicians, tradespeople, and project specialists. The strength of Queensland’s existing infrastructure, combined with our future investment pipeline, is setting up towns like Townsville and regions like North Queensland to cement Queensland’s position as a global green hydrogen leader,” Minister de Brenni said.
Korea Zinc created its subsidiary Ark Energy in Queensland in January 2021 to hasten its energy shift, starting with the Sun Metals zinc refinery in Townsville.
From a behind-the-meter connection to the nearby 124MWac Sun Metals solar farm, Ark Energy’s SunHQ Hydrogen Hub (SunHQ) will generate green hydrogen.
The Queensland Government has committed $5 million to Phase 1 of SunHQ under Round 1 of the Hydrogen Industry Development Fund (HDIF).
Ark Energy will lead the Consortium, according to Ark Energy Chief Executive Officer Daniel Kim, by leveraging its expertise in establishing North Queensland’s domestic hydrogen economy via SunHQ and its portfolio of renewable energy sources, including the Collinsville Green Energy Hub.
“Strategic partnership will be essential to building a new green ammonia supply chain from Queensland to Korea, and we are delighted that Korea Zinc, Hanwha Impact, and SK Gas have decided to join our Consortium,” Kim said.
Korea Zinc Vice Chairman Yun B. Choi stated that the Consortium brings together three of Korea’s largest hydrogen producers, with a demand for over 2 million tonnes of green ammonia annually starting in 2030.
“We look forward to working with our partners to unlock Australia’s potential to become a large-scale producer and exporter of green hydrogen and its derivatives, including green ammonia,” Choi added.
According to Hanwha Impact CEO Hee-Cheul Kim, the company has a mandate to push transformation towards a sustainable future and make the transition to eco-friendly energy and carbon-neutral operations.
“We are excited to be part of this Consortium and look forward to collaborating with our partners to build new green growth engines for both the Australian and Korean economies,” he said.
Meanwhile, SK Gas CEO Brian (Byung Suk) Yoon stated the strategic significance of the MoU and the limitless potential of the Consortium could not be emphasised.
“This MoU aligns with our ambition to become a global top-tier Net Zero Solution Provider, and we’re excited to be collaborating with our partners to play a tangible role in helping countries like Korea in its energy transition by providing clean hydrogen,” Yoon said.
