The restructuring of central Queensland’s fossil fuel dependent economy took another step forward, with funding for a new hydrogen supply chain project located at Gladstone.
Queensland state power company Stanwell Corporation and the consortium behind the Central Queensland hydrogen (CQ-H2) project have received $117 million in funding for the design of the project.
The funds will be used for a front-end engineering design (FEED) study for an electrolyser which, if developed, would be one of the 10 largest hydrogen projects globally, according to research from Deloitte, expected to support 8900 jobs, helping the region transition away from its current LNG and coal production and export activities.
A final investment decision is expected for the project in 2024.
“The Central Queensland Hydrogen Project is a catalyst for economic growth and job creation here in Gladstone. The CQ-H2 FEED study is essential to unlocking the potential of this initiative; we are optimistic about what this could mean for our community,” Gladstone Regional Council Mayor Matt Burnett said in a statement.
The project is envisaged as an end-to-end hydrogen supply chain including the electrolysers, a hydrogen gas pipeline and hydrogen liquefaction facility. The hydrogen will also be delivered to an ammonia production facility. The project will have 640 MW of hydrogen electrolysers and when scaled up will be capable of producing 200 tonnes of hydrogen a day in 2028.
After meeting domestic demand from industrial buyers in central Queensland, the project will export hydrogen via special purpose-built ships to Japan and Singapore and will generate $17.2 billion in hydrogen exports over its 30-year life.
Stanwell has partnered with Iwatani Corporation, Kansai Electric Power Company and Marubeni Corporation on the FEED study. Keppel infrastructure is the newest member of the CQ-H2 consortium and is separately developing the ammonia production facility in Gladstone alongside Incitec Pivot.
The project secured $20 million from the Australian Renewable Energy Agency, $15 million from the Queensland Renewable Energy and Hydrogen Jobs Fund and $89.8 million from the consortium partners for the FEED study. The consortium previously secured funding from the Australian Government and Japan’s Ministry of Economy, Trade and Industry and a previous ARENA funding package for the feasibility study. Stanwell has signed an MoU with Acciona’s Aldoga Solar Farm to source renewable energy for the hydrogen electrolyser project.
“The CQ-H2 project delivers great potential to foster economic and local job growth in Gladstone. I’m proud to support this venture which has the potential to bring real value to our region – both now and decades into the future,” Mayor Burnett added.