Central Queensland Hydrogen Project

May 5th, 2022

Central Queensland Hydrogen Project (CQ-H2)

The project proponents are undertaking a feasibility study into the development of a large-scale renewable hydrogen production facility near Gladstone, Queensland, and a liquefaction plant at the Port of Gladstone, 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 is expected to be completed in May 2022

Estimated cost:

(Feasibility study)
AUD$10.4 million

Other involvement:

 

Production details:

The project aims to produce approximately 100 tonnes of renewable hydrogen per day by 2026, scaling up to 800 tonnes per day in 2031 (using up to three gigawatts of electrolyser capacity)

Location:

Queensland, Australia

Announced funding:

(Feasibility study)
AUD$2.17 million – Australian Renewable Energy Agency (ARENA)

(Capital works-hub development)
Up to AUD$69.2 million to support establishment of the CQ-H2 hub – Australian Government Clean Hydrogen Industrial Hubs Program – Hub Implementation funding stream

Project description

Stanwell Corporation is a Queensland Government owned corporation and a major provider of electricity to Queensland, the National Electricity Market, and large energy customers along the eastern seaboard of Australia. As part of its portfolio renewal strategy, Stanwell has identified renewable hydrogen as a key target market for transforming its business in a lower carbon future.

In May 2020, Stanwell and Iwatani Corporation signed a Memorandum of Understanding to undertake a concept study into a large-scale liquefied renewable hydrogen supply chain between Central Queensland and Japan. The study found that Central Queensland is a globally competitive location for renewable hydrogen production.

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.

In June 2021, it was announced that Stanwell had signed an Option Agreement with Economic Development Queensland to secure a 236-hectare site at Aldoga, west of Gladstone for its proposed hydrogen production facility.

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. Additional funding support for the feasibility study was also provided through the Japanese Ministry of Economy, Trade and Industry (METI).
  • Stanwell and Iwatani formed a broader consortium with three leading Japanese companies (Kawasaki Heavy Industries, Kansai Electric Power Company and Marubeni) and APA Group to commence a detailed feasibility study into the proposed project. Greater detail on the consortium and member roles in the feasibility study is shown here.

The feasibility study is investigating 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 mid-2022.

The project plans involve a staged development with first production of renewable hydrogen targeted for 2026, with scaled-up production capacity targeted at around 800 tonnes per day 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).

The proposed project aims to (amongst other things):

  • Position Central Queensland as an Australian renewable hydrogen hub (the region has high-quality renewable energy resource and infrastructure)
  • Establish a first of its kind integrated hydrogen supply chain between Central Queensland and Japan.
  • Achieve the target hydrogen pricing set by the off-takers, by deploying the supply chain at scale, including production, liquefaction, and shipping of hydrogen
  • Improve the technology and commercial readiness of the project by leveraging expertise across the supply chain and long-term partnerships with key Japanese energy, gas, trading, and technology companies.

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

In November 2021, it was announced that Stanwell Corporation and ACCIONA Energia had signed a Memorandum of Understanding (MoU) on future energy supply for the proposed hydrogen facility. Under the MoU, a direct connection could be established between ACCIONA’s proposed Aldoga Solar Farm (due to commence construction in September 2023) and the proposed hydrogen facility.

In April 2022, under the 2022 federal election caretaker arrangements, it was announced that establishment of the CQ-H2 hub development is recipient of up to AUD$69.2 million in support through the Clean Hydrogen Industrial Hubs Program (Hub Implementation funding stream).

 

Updated: April 2022

Note: The feasibility study 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.