Forrest, Qld in ammonia production tilt

By Marty Silk
Annastacia Palaszczuk and Twiggy Forrest have announced a major hydrogen project in Queensland. (AAP)

Queensland has approved a feasibility study of ammonia production in Brisbane as part of its planned transition into a global hydrogen producer.

Premier Annastacia Palaszczuk announced the government had approved the study on Monday, one day after she announced that one of the world's largest hydrogen-equipment facilities would be built in Gladstone.

The study, due to be completed within three months, will investigate building a new water electrolysis plant on Incitec Pivot's Gibson Island fertiliser plant in Brisbane.

It would produce about 50,000 tonnes of renewable hydrogen per year, which would then be converted into green ammonia for Australian and export markets.

Both the study, and the Gladstone manufacturing plant, are being build in partnership with billionaire Andrew "Twiggy" Forrest's Fortescue Future Industries.

Ms Palaszczuk said setting up a hydrogen industry would help Queensland transition to 50 per cent renewable energy by 2030.

"We have coal, we have gas, and we have renewables, but what we know is that hydrogen is going to be the secret to our long term success," she told reporters.

"That is why our government has been very carefully mapping the path to our hydrogen revolution right across our state that is why we have committed to 50 per cent renewables by 2030."

However, the premier said the state would continue to support thousands of workers in the coal and gas industries.

"Twiggy" Forrest says Brisbane green ammonia would compliment other Queensland hydrogen projects. (AAP)

Mr Forrest said producing green ammonia in Brisbane would compliment other hydrogen projects in Queensland.

However he warned fossil fuels were "a declining industry in anyone's terms", so transitioning to renewables would give workers options.

"Have both, but what you must not do is listen to anyone who says, 'You must just have fossil fuel, I'm fighting for your jobs'. That is not true," Mr Forrest said.

"People who say that will be denuding Queensland of its economy and robbing you of your careers, your jobs, and your future.

"You can have both Queensland, you can have both Australia. Australia and Queensland, we deserve by the renewable energy sector as you can see, it's growing and growing rapidly."

On Sunday, Ms Palaszczuk said Gladstone would become a world-leading hub for the manufacture of electrolysers - vital to the production of renewable hydrogen.

More than 300 jobs are expected to be created during construction and thousands more in the years following.

"We don't just want to export our resources, we want to develop a manufacturing industry capable of making the electrolysers in Queensland as well," the premier told reporters on Sunday.

"Andrew Forrest and I both see Queensland's great potential as a renewables exporter and manufacturer of hydrogen equipment."

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