The project was one of a handful of mega mines that were touted as the future of the mining industry, along with giant projects in the Galilee Basin mines including the controversial Carmichael mine, which was the only one to progress to production.

Glencore has also previously killed off the $1.5 billion Valeria coal mine in central Queensland and Clive Palmer’s giant Galilee coal project has also been torpedoed by the Federal Government.

The State Government has also refused an environmental authority to Palmer’s project.

While environmentalists were cheering the decision they were less than happy about Glencore’s alternative for the project, about 60km from Taroom, on the Western Downs.

In its latest climate change report, Glencore said it planned to use about 4 million tonnes a year from the resource for the potential production of blue hydrogen with carbon capture and storage.

“We do not plan to develop the Wandoan coal resource as a traditional coal mine for the purpose of servicing the traditional coal markets,” Glencore said.

“We are investigating the potential to produce blue hydrogen and ammonia through utilising a relatively small portion of the Wandoan coal resource as feedstock.”

It said the projet was at an early stage and no investment decision had been made. About 90 per cent of the emissions would be captured and stored.

“We believe this blue hydrogen project with CCS could be an important bridge to enabling the broader uptake of hydrogen technology and applications in Australia and globally.”

“Subject to final approvals and final investment decision, a commercial scale blue hydrogen project with CCS located in Wandoan could provide a range of socio-economic opportunities for the surrounding region. We welcome further engagement with all stakeholders on this project,” Glencore said.

It said it expected that blue hydrogen could be produced economically while green hydrogen, which uses water and has no emissions, required a “step-change” in costs.

The Wandoan coal project was granted a licence by the State Government in 2017. It would have covered 32,000ha with 16 mining pits. It was expected to produce 22 million tonnes a year, but needed the Surat Basin rail line to be developed. If that rail line was developed it would have opened the way for a handful of other Surat Basin mines.

Glencore put the project on hold in 2013.

Lock the Gate Alliance national co-ordinator Ellen Roberts said Glencore would have known that by the time it developed Wandoan the market for thermal coal would have disintegrated.

“Instead of accepting its losses, Glencore has come up with a hare-brained scheme that would involve transporting liquid ammonia 380km to Gladstone,” Roberts said.

“Glencore needs to get with the times and invest in renewable energy. Blue hydrogen is a fossil fuel because requires the burning of coal. It has no future in a decarbonised world.”