Central Queensland Hydrogen Project

Central Queensland Hydrogen Project (CQ-H2)

The project proponents are undertaking a feasibility study into the development of a large-scale renewable hydrogen facility and associated infrastructure in central Queensland, with the main focus of exporting liquid hydrogen to the Japanese market.

Main proponents: Stanwell Corporation Limited, Iwatani Corporation, Kawasaki Heavy Industries, Marubeni Corporation, Kansai Electric Power Company, APA Group	Main end-use classification: Focus on liquid hydrogen export potential, domestic applications also to be evaluated	Status: Under development – feasibility study funding announced	Estimated cost: AUD$10.4 million – feasibility study
Other involvement:	Production details: 36,500 tonnes per annum facility capability from 2026, with scale-up to 328,500 tonnes per annum facility capability by 2031 (using up to three gigawatts of electrolyser capacity)	Location: Central Queensland, Australia	Announced funding: AUD$2.17 million – Australian Renewable Energy Agency (ARENA)

Project description

(This project was previously titled ‘Stanwell-Iwatani Central Queensland Green Hydrogen Project’).

Stanwell Corporation, a Queensland government-owned corporation that produces approximately one-third of the state’s electricity undertook a feasibility study to test the longer term potential of a hydrogen export market in central Queensland through the development of a hydrogen electrolysis plant at Stanwell power station, near Rockhampton.

The study began in July 2019 and was completed in the latter part of 2020 (at a cost of around AUD$3.6 million). The feasibility study was supported by (final) ARENA funding of AUD$0.91 million.

The feasibility study investigated the installation of a 10 megawatt (MW) electrolyser at the Stanwell power station site. As well as investigating the optimal design of the electrolyser, the study also evaluated the highest value domestic commercial options for the produced hydrogen – including trucking from site to end-use customers or for on-site uses such as ammonia production or power generation.

The study concluded that the economic feasibility of domestic opportunities for hydrogen around the central Queensland area were challenging though the export opportunities were identified as being very real.

In November 2020, a partnership between Stanwell Corporation and Iwatani Corporation to progress planning on a new hydrogen export focused facility in Gladstone was announced.

Amongst other things, the partnership was working to establish a consortium of international off-takers, investors and government agencies to support development of large-scale hydrogen production in central Queensland, with the aim of exporting hydrogen to Japan and other economies.

In June 2021, it was announced that Stanwell has signed an Option Agreement with Economic Development Queensland to secure land for the facility; the 236-hectare site at Aldoga, west of Gladstone, was identified as the preferred location due to its size and proximity to port, power and pipeline infrastructure.

In September 2021, key project announcements included:

• ARENA announced up to AUD$2.17 million in funding to Stanwell Corporation to complete a feasibility study (at a cost of over AUD$10 million) to investigate the technical and commercial viability of a proposed green hydrogen export project to be located at Gladstone, Queensland.
• Four new members –  Kawasaki Heavy Industries, Kansai Electric Power Company, Marubeni Corporation and the APA Group – would join Stanwell and Iwatani Corporation in undertaking the feasibility study. Greater detail on the consortium and member roles in the feasibility study is shown here.

Additional funding support for the feasibility study is being provided through the Japanese Ministry of Economy, Trade and Industry (METI).

The project plans involve a staged development with first production targeted for 2026, with scaled-up production capacity targeted at around 328,500 tonnes per annum by 2031, using three gigawatts (GW) of electrolyser capacity (and which would require at least 7 GW of associated renewable solar/wind power generation capacity).

A key focus of the project is the supply of liquid hydrogen to the Japanese market.

The feasibility study will investigate the complete hydrogen supply chain, including electrolysis, storage, handling, liquefaction, transportation and shipping and has been designed with the requirements of an investment decision to move to the front end engineering and design (FEED) stage.

In addition to the feasibility study, Stanwell will also undertake a study into local workforce and manufacturing development.

 

Updated: September 2021

Note: The feasibility studies undertaken by Stanwell Corporation noted herein received funding from ARENA as part of ARENA’s Advancing Renewables Program. The views expressed herein are not necessarily the views of the Australian Government, and the Australian Government does not accept responsibility for any information or advice contained herein.