Brookfield’s Dalrymple Bay Infrastructure, which owns the coal port near Mackay, has announced it has developed a transition strategy away from coal and was now looking at a potential hydrogen hub near the port.

Brookfield is also currently in a contested bid to buy AGL and bring forward the energy giant’s closure of its coal fired power stations.

Its subsidiary DBHex Management has signed a funding agreement with North Queensland Bulk Ports, Brookfield Infrastructure and Itochu to complete a detailed feasibility study into an unspecified hydrogen project.

The plan was first indicated in September through a memorandum of understanding but Dalrymple, in which the Queensland Government has a 9.9 per cent stake, has today broadened out its intent saying that it would continue to have a key role in the supply chain for steel but had started looking at diversifying.

Chief executive officer Anthony Timbrell said the feasibility study was just one step it was taking in an effort to diversify its business.

Dalrymple, which sits next to BHP’s Hay Point terminal, services the Bowen Basin coal mines, which a predominantly coking coal, used in steel production, which has not faced the same pressure as the lower quality thermal coals used in energy.

Even so, there is a push for green steel, using hydrogen rather than coal. Companies like Dalrymple also face growing ESG pressures.

The feasibility study would be aimed at understanding the potential for the development of a regional hydrogen hub within the vicinity of the existing terminal infrastructure.

“Dalrymple Bay Terminal will continue to play an essential role in the global steel sector. However, DBI has commended the development of an over-arching transition strategy and these feasibility studies are just one step DBI is taking in its efforts to diversify the business,” Timbrell said.

“By engaging key stakeholders in this early stage of the process we can ensure DBI continues to provide essential infrastructure while supporting a global transition to lower emissions.”

“The studies would seek to quantify the green hydrogen production capability of the region surrounding DBT and the scope and scale of upgrades required to existing terminal infrastructure in order to handle both its own and third-party green energy exports.”

There are several studies underway in Queensland relating to hydrogen and Fortescue’s Andrew Forrest, who will speak at a function in Brisbane tomorrow, has announced the development of a catalyser production facility in Gladstone.

The shift to hydrogen comes as coking coal prices are at about $US430 a tonne, an extraordinary level that has been caused by tight supply and China’s trade bans.

The ANZ Bank economics team produced a report today showing coal exports from Queensland increased 45 per cent in 2021.

However, prices were expected to drop back to about $US180 a tonne later this year.