Singaporean conglomerate Keppel Corporation has announced its participation in a consortium aimed at developing a large-scale hydrogen project in Queensland, Australia.

In addition, Keppel has signed a memorandum of understanding (MOU) with Incitec Pivot, Australia’s leading fertilizer manufacturer, to explore the development of a green ammonia production facility in Gladstone, Queensland. These strategic moves align with Keppel’s commitment to sustainable energy solutions and its vision of becoming a global leader in the green energy sector.

The consortium in which Keppel is now a member, called the Central Queensland Hydrogen (CQ-H2) project consortium, comprises other prominent entities such as Stanwell, Iwatani, Kansai Electric Power Company, and Marubeni. Together, they aim to produce renewable hydrogen primarily for the Japanese and Singaporean markets, utilizing various transportation methods. Additionally, the consortium plans to supply hydrogen to customers in central Queensland. The projected scale of production is approximately 2,500 megawatts of hydrogen.

To kickstart the project, the consortium has initiated a front-end engineering design (Feed) study. This study will lay the foundation for the project’s development and assess the technical feasibility, cost, and timeline for implementation. A final investment decision is expected to be made by late 2024, with commercial operations targeted to commence by 2028.

The inclusion of Keppel in the consortium provides several advantages. Keppel will have access to a secure and reliable source of hydrogen, which will serve as a critical feedstock for its green production facility. The corporation plans to collaborate with Incitec Pivot and other potential partners to establish this facility, further bolstering the production of sustainable energy solutions.

Hydrogen is an essential element in the transition towards a low-carbon future. It is a versatile energy carrier that can be used in various sectors, including transportation, power generation, and industrial processes. Green hydrogen, produced through renewable energy sources like solar and wind power, offers a carbon-neutral alternative to conventional hydrogen production methods, which rely on fossil fuels.

The Queensland region in Australia is particularly well-suited for large-scale hydrogen production due to its abundant renewable energy resources and proximity to export markets. The CQ-H2 project aims to leverage these advantages to position Queensland as a key player in the global hydrogen market while contributing to the reduction of greenhouse gas emissions.

However, the development of large-scale hydrogen projects is not without challenges. One of the primary hurdles is the high cost of production and infrastructure development. Additionally, the establishment of a hydrogen supply chain, including transportation and storage, requires significant investment and coordination among stakeholders.

Nonetheless, the potential impact of the CQ-H2 project and Keppel’s involvement is substantial. The production of renewable hydrogen at such a scale can significantly contribute to decarbonizing energy systems, reducing reliance on fossil fuels, and mitigating climate change. Moreover, the project holds economic potential, creating job opportunities and attracting investments in the clean energy sector.

As Keppel takes its place in the CQ-H2 project consortium, it demonstrates its dedication to advancing sustainable solutions in the energy sector. By combining expertise, resources, and technology, the consortium aims to pave the way for a future powered by clean, renewable hydrogen.

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