It comes a day after Forrest committed to building a hydrogen electrolyser in Gladstone which could eventually cost up to $1 billion, but have an initial investment of $114 million.

The feasibility study would investigate whether green ammonia would be a viable product for Incitec’s Gibson Island fertiliser plant. It would be made through the use of renewable energy and hydrogen and could potentially use electrolysers built in the Gladstone plant.

It would have the potential produce around 50,000 tonnes of renewable hydrogen a year, which would then be converted into green ammonia for Australian and export markets.

As well as being a pollution-free fertiliser, ammonia also stores the highly flammable hydrogen which can be extracted from the ammonia at its destination. It can also be used as a zero carbon fuel in industries like shipping.

Forrest, who said Prime Minister Scott Morrison should go to the COP26 climate summit in Scotland, said Queensland could have coal and hydrogen.

He expected the feasibility study would take about three to four months.

“It will consider an investment of $400m and certainly save the jobs of the 400 people around us,” Forrest said.

“It’s the second really exciting day in which Queensland leads Australia, leads the world in really exciting sustainable green industries.

“You don’t have to choice between fossil fuels, which is a declining industry, or the green energy, green hydrogen sector. Have both, but you must not do is listen to anyone who says you must just have fossil fuel and I am fighting for your jobs.

“That’s not true. People who say that are denuding Queensland of its economy and robbing you of your careers, your jobs and your future.”

Premier Annastacia Palaszczuk said Queensland was seeing “an industrial green revolution taking place”

“Queensland has an exciting future as a global powerhouse for the production of renewable hydrogen and renewables products,” she said.

Incitec chief executive Jeanne Johns said the study was a crucial step in contributing to Australia and Queensland’s potential as a green ammonia powerhouse.

“We’re excited to partner with FFI who are committed to producing zero-emission hydrogen from 100 per cent renewable sources,” she said.

“The combination of FFI’s drive to develop a globally competitive green hydrogen industry, and our leadership and technical skills in ammonia production, will play an important role in developing Australia’s capability in this growing international market.”

The Government would not reveal what incentives FFI has received for the Gladstone electrolyser plant.