SunHQ Hydrogen Hub

April 20, 2021

Ark Energy Corporation Pty Ltd is an Australian subsidiary of Korea Zinc Co., Ltd., the largest zinc producer in the world. Ark Energy’s mandate is to decarbonise the energy supply of the Korea Zinc group starting with the Sun Metals zinc refinery in Townsville, North Queensland.

Sun Metals has joined the RE100 initiative and Ark Energy is committed to support Sun Metals become the first refinery in the world to produce green zinc.

Ark Energy’s mission is to be the most competitive producer of green hydrogen in the world. They also plan to be an extreme user of hydrogen which means that they will look for ways to make hydrogen pervasive across the group’s businesses.

They plan to build the first hydrogen hub, ‘SunHQ’, adjacent to the Sun Metals zinc refinery in Townsville. Green hydrogen will be produced from their co-located solar farm and initially supply a fleet of five 140 tonne rated Hyzon fuel cell prime movers which Ark Energy will lease to its sister company, Townsville Logistics.

With Phase 1 of SunHQ, Ark Energy plans to be a first mover in supplying green hydrogen not just to its sister company but also third-party customers including owners of short haul fleets running back to Ark Energy’s base at SunHQ. In this way, the company plans to not only be an extreme user of hydrogen but also a demand creator of hydrogen.

As the hydrogen cost curves come down and demand increases, Ark Energy plans to scale quite quickly and expand the capacity of its SunHQ hydrogen hub as well as explore opportunities to build additional hubs in Queensland.

As hydrogen moves from being a future fuel to an everyday fuel, there will be a need to establish hydrogen hubs with production and refuelling stations close to demand clusters. Leveraging its experience on SunHQ, Ark Energy intends to roll out additional hydrogen hubs across Queensland (and potentially Australia) and become a major domestic hydrogen producer ahead of their ultimate goal of becoming a green hydrogen exporter.