Global consortium invests A$117m in Australian green hydrogen project.
A consortium of Japanese, Singaporean and Australian companies will invest A$117 million in one of Australia’s largest green hydrogen projects.
The consortium’s investment will fund a Front-End Engineering Design (FEED) study for the Central Queensland Hydrogen (CQ-H2) project.
The project involves using renewable energy to produce green hydrogen on a large scale. If progressed, the project aims to generate 200 tonnes of green hydrogen per day by 2028. This will ramp up to 800 tonnes per day by 2031. The green hydrogen will be liquefied and exported to Japan and Singapore.
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At its peak, the project will support more than 8,900 new jobs. It will deliver A$17.2 billion in hydrogen exports over its 30-year life. It will also benefit the construction, utilities, heavy manufacturing and local service industries.
Australian Minister for Climate Change and Energy, Chris Bowen, says: ‘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.’
Support from the Australian and Queensland governments
Members of the consortium are:
- Iwatani Corporation (Japan)
- Kansai Electric Power Company (Japan)
- Marubeni Corporation (Japan)
- Keppel Infrastructure (Singapore)
- Stanwell Corporation (Australia).
The Australian Government, through the Australian Renewable Energy Agency (ARENA), provided A$20 million towards the CQ-H2 project. The Queensland State Government contributed A$15 million from its Queensland Renewable Energy and Hydrogen Jobs Fund.
The proposed project involves developing a hydrogen production facility and a hydrogen liquefaction facility, both based at Gladstone in regional Queensland. The 2 sites will be connected by a 25-kilometre hydrogen gas pipeline.
Kansai Electric Power will investigate the use of green hydrogen at its thermal power station in Japan. The green hydrogen will potentially be supplied to Australian chemical manufacturer Incitec Pivot’s ammonia production facility in the Gladstone region. Keppel will also consider supplying green ammonia to its new hydrogen co-firing plant under construction in Singapore.
A regional green hydrogen hub
Gladstone is one of the best regions in Australia to produce and export green hydrogen. The region has abundant renewable energy sources, a well-developed and sizeable port, and is at an advantageous distance to Japan. The Australian Government has designated the region as a hydrogen hub.
The Queensland Government has also announced plans to establish 25 GW of renewable energy capacity by 2035.This will expand the state’s renewable energy sources and the transmission and distribution networks that are essential for green hydrogen production.
Austrade will continue to support the global consortium for further project development.
Austrade, together with the University of Technology Sydney (UTS) and Investment NSW, will host the invite-only Decarbonising Australia Business Summit in Sydney on 26 July 2023. The event will bring together government, industry and research community to explore future commercial decarbonisation collaborations between Australia and Japan.
Global consortium invests A$117m in Australian green hydrogen project, June 15, 2023
