Emerald Coaches has decided to replace its diesel-powered buses with hydrogen-powered ones.

Emerald Coaches has established a goal of reaching net zero emissions by 2040, which is 10 years ahead of the federal government’s current target of 2050.

In addition to being “the right thing to do,” company director Michael Baulch said it was also a wise financial choice.

Battery electric or hydrogen fuel cell electric were Baulch’s choices when looking at net zero vehicles. It was more cost-effective and easier for the corporation to create its own hydrogen this way.

The depot in Emerald, 270 kilometres west of Rockhampton, will produce green hydrogen fuel in the future using rainwater harvested on-site with a renewable-powered electrolyser.