The Queensland Government and Federal Government have partnered in a consortium to deliver a $117 million investment in green hydrogen – the largest investment in the nation’s history.
The investment will fund the Front End Engineering Design (FEED) for the Central Queensland Hydrogen (CQ-H²) project, located at Gladstone.
The Queensland Government have funded $15 million as part of the Queensland Renewable Energy and Hydrogen Jobs Fund.
The Australian Renewable Energy Agency (ARENA) will provide $20 million in funding, while $15 million will be provided from the Queensland State Government with the remaining $81.8 million from consortium partners passionate about green hydrogen.
The project is being funded by the Federal and State Governments, with additional funding from consortium partners Iwatani Corporation (Japan), Kansai Electric Power Company (Japan), Marubeni Corporation (Japan), Keppel Infrastructure (Singapore) and Queensland’s publicly-owned Stanwell Corporation.
Successful completion of the FEED will bring the project one step closer to a Final Investment Decision, planned for late 2024.
The Queensland Government said that developing a green hydrogen export industry in Gladstone will create significant economic opportunities for Queensland, with the project expected to create almost 9,000 jobs and over $17.2 billion in hydrogen exports over its 30-year life.
Federal Minister for Climate Change and Energy, Chris Bowen, said, “Projects like this are critical to scaling up Australia’s green hydrogen industry.
“The Government is committed to making Australia a global hydrogen leader and projects like the CQ-H2 Project could lead the way in exporting renewable hydrogen to the international market.
“Japan, Korea and China are three of our largest trading partners and have all made clear commitments to increase the use of hydrogen, with a focus on establishing international supply chains for imports.”
Queensland Premier, Annastacia Palaszczuk, said, “This international partnership shows Queensland’s dominant position as a global hydrogen heavyweight.
“This is excellent news for Queenslanders because it’s projects like this that will unlock huge economic opportunities by creating thousands of local jobs and billions of dollars in investment.
“Because of the investments we’re making, the Queensland economy will reap the benefits of the global clean energy transition, while ensuring Queensland has more cheaper, cleaner renewable energy to power our businesses and homes.”
The State Government also said the project could produce 800 tonnes per day of clean, green hydrogen by the early 2030s, equivalent to fueling more than double Australia’s heavy vehicle fleet.
Queensland Treasurer and Minister for Trade and Investment, Cameron Dick, said, “This is the largest green hydrogen investment of its kind in the nation’s history.
“It is an investment in Queensland and an endorsement of the Palaszczuk Government’s Energy and Jobs Plan.
“The Palaszczuk Government is working hard to drive the state’s hydrogen industry forward, to create highly skilled jobs, especially in regional Queensland.
“That’s why, through the Treasury’s Queensland Renewable Energy and Hydrogen Jobs Fund, we invested $15 million into this stage of the project.”
Queensland Minister for Energy, Renewables and Hydrogen, Mick de Brenni, said, “Green hydrogen is the next resource frontier for a world hungry for renewables, and it’s Queensland’s green hydrogen industry that will ensure the greatest climate, jobs, and export opportunity in a generation.
“We are writing a new chapter and carving our own path to ensure Queensland’s mighty sun, wind and water are leveraged to help decarbonise our nation, and the world.”
Stanwell CEO, Michael O’Rourke, said, “The advancement of this important hydrogen project is great news for Central Queensland, where the project could create thousands of jobs and deliver billions of dollars in economic benefit.
“We are proud to be leading the CQ-H2 project with our partners, which demonstrates our commitment to driving the development of Queensland’s hydrogen industry and other new technologies.”
Featured image: Consortium partners at the CQ-H2 FEED announcement. Courtesy of Stanwell.
