Stanwell to begin 3GW green hydrogen project in early 2023

Stanwell announced it plans to begin a Front End Engineering Design (FEED) study in early 2023 after a $10.4 million (USD 7 million) feasibility study found the proposed 3 GW facility is technically feasible and commercially viable. This puts Queensland’s largest renewable hydrogen development, the CQ-H2 project, on track for the first production in 2027.

With the goal of producing up to 800 tonnes of green hydrogen per day for sale to Japan and usage in the local industry, the CQ-H2 project at Aldoga, about 20 kilometers northwest of Gladstone, is being developed by an international collaboration that includes publicly owned energy utility Stanwell.

The project is being developed with Iwatani, the Australian energy infrastructure company APA Group, and the Japanese firms Kansai Electric Power Corporation, Marubeni, Kawasaki Heavy Industries, and Stanwell.

According to Stanwell Chief Executive Officer Michael O’Rourke, the business and its partners recently finished a thorough feasibility study that demonstrated the project is both technically and financially feasible, “with appropriate government support in the initial phases.” The parties are now collaborating to finalize the arrangements to advance the project to FEED.

“The FEED study will give the detail required to support a final investment decision,” he said. “Final approval by consortium members is pending.”

The project is on schedule for initial hydrogen production in 2027 because of high-caliber competence throughout the supply chain, including prospective off-takers.

According to O’Rourke, the CQ-H2 project will eventually grow up to more than 3 GW of electrolysis capacity by the early 2030s. The project has inked an agreement to source renewable energy from the proposed 600 MWp Aldoga Solar Farm of Spanish renewable energy business Acciona Energia.

From 2027, it is estimated that the facility will produce up to 36,500 tonnes of renewable hydrogen year before increasing production to about 292,500 tonnes annually to fulfill demand projections.

The state government has committed $15 million to pay for Stanwell’s FEED expenses, which include future supply chain and employment possibilities development.