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An outback Queensland power station will become the second in the state to introduce hydrogen power to fuel its electricity generation.
The Barcaldine Power Station in central-west Queensland has received $75 million from the state government to transition to renewable energy.
It comes after an announcement last November of the state's first hydrogen-ready power plant at Brigalow in the Western Downs region.
ZEN Energy director Professor Ross Garnaut said Barcaldine, more than 1,000 kilometres north west of Brisbane, was one of the best places in the world for generating large quantities of renewable energy.
He has been working with the local council to establish the Barcaldine Renewable Energy Zone, described as Australia's first regional zero emission business development.
"This is the energy transition in play," Dr Garnaut said.
"Using solar and wind power from the Barcaldine area, we'll be helping to keep the lights on, not only in the central-west, but where the power goes to Clermont and other parts of Queensland."
How does it work?
Hydrogen is made by running electricity through water, which splits water into its components — hydrogen and oxygen.
A hydrogen generation unit will be built alongside an existing gas-fired unit at the Barcaldine Power Station.
Dr Garnaut said hydrogen had the same ability to create energy as gas, only "cleaner".
"The main difference is that after the hydrogen burns, it's water vapour or steam that goes into the atmosphere, and a bit more water in the atmosphere doesn't hurt anyone," he said.
While the generation capacity of the power station would nearly double from 37 megawatts to 67 megawatts, the plan was to decommission the current gas-fired unit over the next five to seven years.
Ergon Energy Retail executive general manager Ayesha Razzaq said the gas generator would then be replaced with the hydrogen-capable unit.
"As we transition to net zero, we're bringing in a lot more renewable generation into the grid," she said.
"What hydrogen will allow us to do is provide low-to-zero emission electricity to customers."
Bringing jobs to the outback
Barcaldine Regional Council Mayor Rob Chandler said the project had been in the works for six years.
"We're ready to build now," he said.
"It makes sense to move the renewable energy generation inland and create job opportunities for these communities."
Queensland Minister for Energy Mick de Brenni said the power station upgrade would bring up to 40 jobs to the region.
"This expansion provides a much-needed boost for the Barcaldine region … and will assist with the development and training in new skills for the future clean economy," he said.
Construction on the power plant is set to begin in early 2025.