The Government has promised $5 million for SeaLink to design and build the boat that will be powered by hydrogen fuel cells. The total cost of the project was $20.6 million.

The ferry would have the capacity to carry 200 passengers at speeds of up to 20 knots and with a range of 50 nautical miles.

SeaLink said the ferry would be a world first and deputy premier Steven Miles said the project would help develop highly skilled jobs in an emerging technology.

It was the largest funding so far from the Government Hydrogen Industry Development Fund but Miles said a second round of grants would see about $20 million allocated to hydrogen projects.

Gladstone is also the site of Fortescue’s hydrogen electrolyser plant and is expected to play a key role in the emerging industry because of its existing gas infrastructure.

A $4.7 billion plan for green hydrogen and ammonia plant in the city has also been awarded coordinated project status by the State Government.

It came as the Government-owned CS Energy and Senex announced they would join forces to develop a hydrogen demonstration plant near Chinchilla.

The two companies have formed a joint venture to develop the Kogan Renewable Hydrogen project and an associated refueller network which will receive about $29 million from the State Government.

Energy Minister Mick de Brenni said green hydrogen was key to diversifying the energy sector.

“This green hydrogen will be used in the latest stop on our hydrogen superhighway established with NSW and Victoria and help develop Australia’s energy independence,” de Brenni said.

CS Energy will operate and hold 75 per cent equity in the project while Senex, which was recently taken over by Posco and Gina Rinehart’s Hancock, will hold 25 per cent.

CS Energy chief executive Andrew bills said there was enormous potential in hydrogen.

The project would include a solar farm, battery, hydrogen electrolyser, a hydrogen fuel cell and storage and an out-loading facility.

The green energy sector has also been boosted by plans from Sunshine Hydro to develop a $2 billion pumped hydro and hydrogen project near Miriam Vale in central Queensland.

The Flavian Superhybrid project would include 600 megawatts of hydro energy storage with 18 hours of operation. It would also have 300MW of hydrogn generation, 50MW of liquefaction, a 50MW fuel cell and 1.8 gigawatts of wind generation.

The company would not reach financial investment decision until 2025 and development was expected to be completed by 2028.