A green iron manufacturing facility in central Queensland is set to proceed thanks to federal government tax incentives for renewable hydrogen. 

The Gladstone Green Iron project involves mining iron ore approximately 70 kilometres west of Gladstone, which will then be transported to a new facility to be processed into green iron using renewable hydrogen produced in a neighbouring plant.

The recent federal budget included production tax credits worth $13.7 billion for hydrogen and critical minerals. 

These credits, part of Labor's Future Made in Australia plan, aim to stimulate investment in renewable hydrogen and green metals, along with other industries utilising hydrogen.

Treasurer Jim Chalmers emphasised the significant role central Queensland will play in this industrial plan. 

Speaking in Gladstone this week, he said; “It’s about building on our strong and proud foundation as a resources powerhouse to also be a renewables powerhouse.”

The green iron project, valued at $3.5 billion and led by Quinbrook Infrastructure Partners, will rely on hydrogen from the nearby Central Queensland Hydrogen Project.

Gladstone was picked in part because of its proximity to an existing port and essential infrastructure. The region also has the advantage of abundant renewable power sources.

The opposition has expressed dissent regarding the tax incentives for hydrogen and critical minerals. Opposition leader Peter Dutton argued that these projects “should stand up on their own without the need for taxpayer’s money”.