Australia to fund Gladstone hydrogen project study

Australia's proposed Central Queensland hydrogen project (CQ-H2) will receive A$35mn ($23mn) in government funding for initial engineering, ahead of a final investment decision planned for late 2024.

The Queensland and federal governments will commit A$15mn and A$20mn respectively towards a A$117mn engineering report for the Gladstone-based CQ-H2, with the federal contribution allocated through the Australian Renewable Energy Agency. The balance will be funded by the consortium's investors, including Queensland state-owned power utility Stanwell along with Japanese firms Iwatani, Kansai Electric Power and Marubeni.

"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," federal energy minister Chris Bowen said.

CQ-H2 is one of Australia's largest planned hydrogen hubs. Queensland's government envisages giant renewable energy zones inland of the site to power CQ-H2's electrolysers to produce as much as 800 t/d of green hydrogen by the early 2030s.

But the proposal faces significant obstacles as decarbonising Gladstone's existing industry is estimated to require at least 34,000MW, which is more electricity than Queensland's government plans to build by 2035 under its 80pc renewable power goal.

Gladstone is one of seven hydrogen hubs identified as part of Australia's 2019 national hydrogen strategy, presently under review as the government digests the impact of the US' Inflation Reduction Act.

Keppel, IPL plan partnership

Singapore's Keppel has also announced it will partner with Australian fertiliser and industrial chemicals group Incitec Pivot (IPL) to investigate developing a green ammonia facility, with Keppel to join the CQ-H2 consortium.

The announcement comes one year after Australian chemicals and explosives firm Orica agreed to explore a similar green ammonia offtake and supply agreement at Gladstone.

Keppel described its participation in the consortium as providing the company with a "competitive advantage of having access to a ready and reliable source of green hydrogen as feedstock for a green ammonia production facility, which it plans to develop with IPL and other potential partners".

By Tom Major

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