CS Energy has hired IHI Engineering Australia (a subsidiary of IHI Corporation Japan) to construct the Kogan Renewable Hydrogen Demonstration Plant near Chinchilla. Construction is expected to begin in six months.
Minister for Energy, Renewables and Hydrogen Mick de Brenni made the announcement in a media release today.
Additionally, Mr de Brenni said that the government would contribute $28.9 million to the project and a refueling network through the government’s $2 billion Queensland Renewable Energy and Hydrogen Jobs Fund. CS Energy is currently developing its plans for a refueling network in South West Queensland.
“The Kogan Renewable Hydrogen Demonstration Project will produce 50,000 kilograms of renewable hydrogen each year when operational in 2023,” Mr de Brenni said..
“It is one of the most advanced renewable hydrogen projects in Queensland, with CS Energy’s recently announced collaboration with Japan’s Sojitz Corporation to export hydrogen to Palau, as well as strong interest from potential offtakers in the domestic heavy transport and haulage sector.
“Queensland has a unique competitive advantage in the production of renewable hydrogen, with our proximity to Asia, established infrastructure, manufacturing capabilities and renewable energy generation.”
Mr de Brenni said the innovative project was expected to create 20 jobs during construction and would support local businesses and jobs.
“This project highlights the significant value of Queensland’s publicly owned power stations in the diversification of our State’s future energy portfolio,” Mr de Brenni said.
“The demonstration plant’s hydrogen electrolyser will only be powered by behind-the-meter solar energy, making it one of the few truly renewable hydrogen projects in Australia.
“A range of businesses will be used to deliver this project, ranging from local contractors for some on-site works and services, to international suppliers of specialised equipment.
“It’s great to hear that IHI Engineering Australia has already been in discussions with regional companies identified through CS Energy’s skills mapping partnership Toowoomba and Surat Basin Enterprise.”
Andrew Bills, CEO of CS Energy, said IHI has demonstrated experience in renewable hydrogen and he looked forward to working with them again following the completion of their joint feasibility study for the Kogan project in 2021.
“This demonstration project will provide CS Energy with valuable expertise and learnings so that we can establish a footprint in the renewable hydrogen sector and prepare for upscaling to commercial scale,” Mr Bills said.
“As Australia’s energy sector transforms, it’s really important that CS Energy diversifies our revenue streams so that we create a sustainable future for the business.”
Motoya Nakamura, managing director of IHI Engineering Australia, stated that IHI values its relationship with CS Energy and looks forward to collaborating on an intriguing project in the hydrogen and renewables field.
“IHI welcomes the opportunity to be involved in the initial stages of kick starting the global green hydrogen and ammonia value chain and is committed to the development of this new industry in Australia,” Mr Nakamura said.
“IHI has been a significant contributor to the development of the energy sector in Australia over the last 50 years and looks forward to expanding our low carbon project portfolio over the 50 years to come.”
A solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage, and out loading facility are all co-located in the demonstration project.
It will be constructed adjacent to CS Energy’s Kogan Creek Power Station but will run entirely on renewable energy generated by the solar farm.
Construction is scheduled to commence in September 2022, pending receipt of all necessary development approvals.
Once built, CS Energy will manage and maintain the plant.
