Townsville North Queensland presents a unique opportunity to centralise sovereign manufacturing, renewable energy generation and transmission, future fuels production, critical minerals mining and processing and defence capability.
Future fuels will play an imperative role in improving sovereign capability in the North as well as decarbonising hard-to abate transportation sectors. Domestic fuel security has continued to be highlighted as a strategic vulnerability, with only two sovereign oil refineries left operating in Australia. Recent global conflicts and the pandemic continued to expose the fragility of Australia’s domestic fuel supply chains. This is also coupled with an increased demand for fuel as a result of growing military operations in the North with the expected force posture changes and the construction of new training areas for Army. Despite this, our fuel reserves have not met the International Energy Agency’s 90-day minimum requirements since 2012. In response to these challenges, North Queensland is positioning itself as a hub for future fuel production and distribution.
Plans have been announced for the construction of Australia’s first Sustainable Aviation Fuel (SAF) and renewable diesel production facility by Jet Zero Australia, with guaranteed offtake already secured through partnerships with Qantas and Airbus. Whilst offtake has primarily been committed to the commercial aviation sector at this stage in the project, the colocation of significant Army Aviation works and maintenance also presents an important opportunity for the region.
Emerging opportunities such as hydrogen fuel production will also play an important role in addressing the fuel and energy needs for the regional economy more broadly. There are plans for a renewable hydrogen production facility to be constructed at the Lansdown Eco-Industrial Precinct, with 300 tonnes earmarked for domestic use and an additional 150,000 tonnes for export.
Another important aspect of the North’s energy and fuel production potential includes the plans for the construction of $1.7 billion methanol manufacturing plant which is expected to produce 400,000 tonnes of green methanol. ABEL Energy is seeking to export green methanol through the Port of Townsville and provide green bunkering facilities on Port land. This will have a significant impact on both reducing the carbon footprint of the North’s marine shipping and cruise industry but will also provide important fuel bunkering services which the Port has previously been unable to provide.