Phillip Thompson (Herbert, Liberal National Party) Share this | Link to this | Hansard source

There is no question that the City of Townsville will play a major role in being a major producer of hydrogen into the future. We're making significant investments in hydrogen right now and around the country. A couple of weeks ago in Townsville, it was a great pleasure to make a major funding announcement for a world-first project.

While we know hydrogen will play a key role in a future energy mix for Australia, technology to produce it and put it to use is still in its early development phase. That's why the project I'm about to outline is so key. Not only will it reduce reliance on fossil fuels for a major North Queensland industry; it will help develop a model to expand and adopt it across the nation and throughout the world. It's a concept that, once proven within just a couple of years, I've no doubt, will be the envy of the world. Through a federal government investment of $15.5 million, through the Clean Energy Finance Corporation and the Australian Renewable Energy Agency, five trucks will hit the road in Townsville, powered by green hydrogen that's been produced in Townsville.

The proponent is Ark Energy, a sister company of Sun Metals which runs a zinc refinery that has been operating in Townsville for decades. The investment will enable two things: firstly, to be able to purchase five large hydrogen fuel cell large heavy-haul trucks; and, secondly, a one-megawatt electrolyser to produce hydrogen powered by Sun Metals at their massive site, their solar farm. Ark Energy's SunHQ hydrogen hub is expected to produce up to 158 tonnes of hydrogen a year. The 540-tonne trucks will transport zinc ore from Townsville port to Sun Metals Zinc Refinery where the hydrogen will be produced. The trucks will be able to refuel and return zinc to the port in a 30-kilometre round trip. Currently, these round-the-clock operations are powered by diesel. Under this project, they will avoid 1,300 tonnes of CO2 each year. Unfortunately, heavy freight has been a challenge for the industry because electric engines powered by batteries just don't have enough grunt to be viable. That's why hydrogen will be so important to this industry going forward. But running this fleet of five trucks is just the start.

Ark Energy plans to upscale its operations within years to produce enough hydrogen to supply a domestic market which is expected to see very strong growth. After that they will focus on an export market with plans to send hydrogen offshore to customers throughout Asia. Everything that is learnt about hydrogen throughout this project will help others who are keen to improve their sustainability as well.

We talk a lot in this place about targets and technology, and that's very important, but it's projects like these where our investments are fuelling real initiatives on the ground that we are getting on with. Ark Energy and Sun Metals have runs on the board when it comes to reducing their reliance on the grid and that they have an Australian-first fleet of hydrogen-powered trucks moving freight around our city is a massive vote of confidence.

This is the first investment in Australia by the CEFC through the Advancing Hydrogen Fund. That's a project in Townsville that will be the first cab off the rank when it comes to federal funding for hydrogen projects. There will be no doubt more to come with the National Hydrogen Strategy setting out a vision for Australia to become a major global hydrogen supplier by 2030.

We're investing more than $1.2 billion to accelerate the development of an Australian hydrogen industry. This project with Sun Metals and Ark Energy is only the beginning. I've been working with a consortium of like-minded proponents with a strong vision for hydrogen in Townsville and have joined forces to ensure this can happen. Together we've formed NQH2, the consortium. Ark Energy is a part of that as well as Origin Energy, a subsidiary of Kawasaki, who are already building strong links for future hydrogen export with markets in South Korea and Japan. Recently, NQH2 consortium applied to National Energy Resources Australia, or NERA, to establish Townsville as a declared hydrogen cluster. This will be excellent news for Townsville and put us on the national map as a city and a region that has hydrogen as a priority industry.

I'd like to congratulate all the members of the consortium in Townsville Enterprise who have led the charge. This kind of thing needs to be community led and industry led. The one thing that I've learnt in this place is: nothing should be government led; it should always be led by industry, experts and professionals. Government should be listening, allowing industry to determine the best path forward, providing the support, the environment, and stepping back and allowing them to get on with their job; they're the experts.

I look forward to continuing to work with the consortium to identify and put forward further hydrogen projects to increase our contribution to this industry and make the most out of the opportunity it provides. This is a big step for Townsville and it's in the right direction. We are going to be the first in Australia to have hydrogen-powered vehicles, or large-haul trucks. Nowhere else. This is great for the region, and it will develop our hydrogen technologies and experience to be able to help other communities and other places around Australia.

Speaking of providing support to industry, it has been very good to see a number of businesses and organisations in the electorate of Herbert receiving support under our North Queensland Economic Diversification grants program. This program was developed in response to the 2019 monsoon flood event, which devastated Townsville and North Queensland, to help businesses recover and emerge stronger by expanding their business.

Four organisations in the electorate will share in more than $1.2 million worth of funding under the program. Fruit-processing business Simsha does a fantastic job sending out local produce to the nation and an investment of $400,000 will help them build a larger plant to process fruit which otherwise they wouldn't be able to do. A four-wheel drive hire business with an investment of more than $335,000 will help more tourists get out and about and enjoy our beautiful region. A sport-fishing charter will build a new vessel for offshore fishing charters and operate year-round after receiving a grant of $110,000. We’re also supporting the Arcadian Surf Lifesaving Club to complete the final stage of their Alma Bay clubhouse renovation and extension. This is a great investment. But all these investments aren't because of me; it’s because of them. They’re the ones who come to me or to other members of parliament with a plan, with a direction, with an idea. I'm just happy that I can work side by side with them and allow them to achieve greatness. Once again, this isn't government leading. This is industry, people and communities banding together to ensure that we, in the regions, can benefit from these kinds of grants. The result will mean better facilities at Alma Bay for more volunteers to patrol our beaches and keep swimmers safe.

We know that our city is still feeling the effects of the 2019 flood event, which is why we’re investing in local and small businesses and organisations to help them grow and thrive and create local jobs. Across North and north-west Queensland, 15 projects have received funding under this round of grants and will receive between $10,000 and $500,000 to diversify existing industries or start new ones. The economic diversification grants program is one of five programs funded through the government's $60 million package to support the long-term recovery of 14 local government areas hardest hit by the monsoon trough. The National Recovery and Resilience Agency is continuing to work hard to build back from the disaster. Communities are still devastated.

We are also continuing to work closely with businesses, offering them a hand to expand and diversify with the recently opened Northern Australia business development grants and industry transformation grants. Under the business development stream, grants between $50,000 and $2 million are available for small and medium businesses to create jobs and strengthen their capability and resilience through diversifying. This fantastic opportunity that we've committed to on an ongoing basis is another example of how we’re asking small businesses what they want and giving them a helping hand up. The key is to ask people what they want, not to tell them what they need.

Before I finish up, there was a comment made in the House today by an opposition member that was worried about what someone said around Sam Dastyari. I want to put my view on the record. My view of Sam Dastyari and what happened is a national disgrace. I think he is a traitor to this nation. To have helped his friend of the CCP through his position on the PJCIS and his position as a senator and inform someone known to have ties with the CCP that their phone had been bugged is absolutely disgusting. Sam Dastyari is a traitor to this nation.