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Green Hydrogen H2 News

Australia’s Central Queensland Hydrogen Project Secures Major Funding

Anela DoksoBy Anela Dokso26/05/20232 Mins Read
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Australia’s ambitious Central Queensland hydrogen project (CQ-H2) has received a significant boost with A$35 million ($23 million) in government funding allocated for initial engineering.

The Queensland and federal governments will contribute A$15 million and A$20 million, respectively, towards a A$117 million engineering report for the CQ-H2 project based in Gladstone. The Australian Renewable Energy Agency will administer the federal funding, while the consortium’s investors, including Queensland state-owned power utility Stanwell, and Japanese companies Iwatani, Kansai Electric Power, and Marubeni, will provide the remaining funds.

The Australian government’s commitment to supporting projects like CQ-H2 stems from its desire to establish the country as a global leader in the hydrogen industry. With its potential for exporting renewable hydrogen to international markets, the CQ-H2 project is seen as a promising venture in this regard, according to federal energy minister Chris Bowen.

The CQ-H2 project aims to become one of Australia’s largest hydrogen hubs, with the Queensland government envisioning the development of vast renewable energy zones inland from the site. These zones will supply the necessary power for the project’s electrolysers, enabling the production of up to 800 tons per day of green hydrogen by the early 2030s.

However, the proposal faces significant challenges, particularly in decarbonizing Gladstone’s existing industries. The process is estimated to require a minimum of 34,000 MW of electricity, surpassing the amount of electricity Queensland’s government plans to generate from renewable sources by 2035, as part of its goal to achieve 80% renewable power.

In addition to the government funding news, Singapore’s Keppel Corporation has announced its intention to partner with Australian fertiliser and industrial chemicals group Incitec Pivot (IPL) to explore the development of a green ammonia facility. Keppel will also join the CQ-H2 consortium, further enhancing its involvement in the hydrogen project. This collaboration will provide Keppel with a competitive advantage by granting the company access to a reliable source of green hydrogen, which will serve as a crucial feedstock for the planned green ammonia production facility.

The joint efforts of Keppel, IPL, and other potential partners will contribute to the overall vision of establishing sustainable and eco-friendly energy solutions in the region. By leveraging hydrogen as an energy carrier, these companies aim to promote the use of clean and renewable resources, ultimately supporting the global transition to a low-carbon future.

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