Korea East West Power, which has 11 gigawatts of generation capacity, and H2U signed a memorandum of understanding to develop value chains for the possible use of hydrogen in decarbonising its power stations.

Hydrogen can be stored within ammonia and allow it to be more easily transported.

It follows a domestic deal with Orica earlier this year which could lead to green ammonia being supplied to the company’s Gladstone manufacturing plant from H2U’s operations in the port city.

Orica and H2U would also collaborate on a possible export terminal for ammonia at the Port of Gladstone.

In Friday’s deal, H2U and Korea East West (referred to as EWP) would work together on the design and future development of infrastructure needed to get the ammonia from Gladstone to South Korea where a conversion of its power stations was planned.

EWP, a subsidairy of Korea Electric Power, already an investment in Columboola solar farm in the Western Downs.

H2U chief executive Attilio Pigneri said the agreements with EWP and Orica were a vote of confidence in the project which has already received the status of a declared project by the Queensland Government.

“We look forward to working with Korea East West Power, Orica and the Queensland Government to establish Gladstone as global leading hub in emerging green hydrogen and green ammonia export market and to secure new long-term jobs and economic growth for central Queensland,” he said.

The announcement did not detail the potential offtake volumes EWP was planning.

Regional development Minister Glenn Butcher said the latest agreement was another sign that Queensland was establishing itself as a renewables powerhouse.

The H2U project would have 3 gigawatts of electrolysis and would produce up to 5000 tonnes a day of ammonia using renewable energy.

EWP was not just relying on the Gladstone project. It recently signed a deal with an environmental technology company to convert waste paprika culture medium into pellets that could be used as a source of energy.