Ashurst advises Ark Energy on Hydrogen project financing

The CEFC commitment, on behalf of the Federal Government, provides Ark Energy with up to $12.5 million and is CEFC’s first investment through the Advancing Hydrogen Fund.

Ark Energy’s SunHQ will include a 1MW PEM electrolyser, compressors, storage and refuelling infrastructure that will produce up to 158 tonnes of green hydrogen per annum. It will be powered by renewable energy from the neighbouring Sun Metals 124MW alternating current solar farm co-located with the Sun Metals zinc refinery. Ark Energy will own the FCETs and lease them to its sister company, Townsville Logistics, to be incorporated into its short haul fleet running in triple trailer road train configuration and operating between the Port of Townsville and the Sun Metals zinc refinery. The five zero emissions FCETs will replace their diesel equivalents and avoid 1,300 tonnes of CO2 emissions per annum.

Phase 1 of SunHQ has also received a $3 million grant from the Australian Renewable Energy Agency (ARENA). SunHQ is the first hydrogen project to be jointly supported by ARENA and CEFC which demonstrates the need for cooperation in order to decarbonise notoriously hard to abate sectors like heavy haulage and build Australia’s domestic hydrogen economy.

The Ashurst team was led by partner Chris Redden, who was assisted by partner Paul Curnow, senior associate Melany Wilson and graduate Joanna Ma.