RAIL freight operator Aurizon has received $5 million in funding for new hydrogen-powered trucks and a refuelling facility in Townsville.

The funding was allocated under the Queensland government’s $35 million Hydrogen Industry Development Fund.

The announcement follows the release of the Energy and Jobs Plan for Queensland, which outlines a clean energy future for the state and includes what is reportedly the largest pumped hydro scheme in the world.

Aurizon managing director and CEO Andrew Harding said renewable hydrogen offers significant opportunities for Australia’s transport industry.

“Renewable hydrogen is one of the emerging energy options that will assist industry to decarbonise operations throughout the supply chain while remaining cost competitive,” Mr Harding said.

He said renewable hydrogen would play an important role in enabling Aurizon to reach its target of net zero operational emissions by 2050.

“Queensland government funding will assist us to look at replacing diesel-powered trucks with new technology hydrogen fuel cell electric heavy vehicles,” he said.

Minister for resources and member for Townsville Scott Stewart said Aurizon was prioritising renewable energy projects that would use locally produced hydrogen.

“Aurizon plans to use four hydrogen-powered prime movers to haul goods in and around its freight operations at Stuart Terminal and the Port of Townsville,” Mr Stewart said.

“It’s projects like this that have allowed us to deliver the transforming Queensland Energy and Jobs Plan because we’re a government that invests and we have a private sector that has confidence in Queensland.”

Les Walker, Member for Mundingburra, said the port of Townsville was well positioned to benefit from the project.

“The prime movers are expected to reduce carbon dioxide emissions by up to 1000 tonnes per year, representing a major reduction in its use of diesel fuel for road transport,” Mr Walker said.

“Aurizon plans to build a refuelling station in Townsville and source hydrogen from another company that’s also progressing renewable hydrogen use in the north, Ark Energy.

“Just last week Townsville’s own Ark Energy signed the first MOU for international green energy exports from North Queensland.”

Deputy premier and minister for state development Steven Miles also announced his support for the project.

“Aurizon’s project will put four hydrogen-fuelled prime movers on the road in Townsville and create more opportunities for other businesses to convert their transport fleets to new technology fuel,” Mr Miles said.

He said the Energy and Jobs Plan would line Townsville and North Queensland up to become a renewable energy powerhouse.