Selling our sun and wind to power the world

Queensland’s hydrogen industry took a significant step today – publicly releasing the study that proves feasibility for the State’s largest renewable hydrogen project.

The CQ-H2 project could produce 800 tonnes per day of clean, green hydrogen, equivalent to fuelling more than double Australia’s heavy vehicle fleet.

The Palaszczuk Government has today announced publicly owned Stanwell Corporation and partners are preparing to start a Front-End Engineering Design (FEED) study in early 2023, as they drive to final investment decision.

Treasurer and Minister for Trade and Investment Cameron Dick said Stanwell’s partnership with major global energy heavyweights to build the CQ-H2 project could unlock billions of dollars of investment and thousands of good jobs for Queenslanders.

“The CQ-H2 project’s benefits for Queensland could be immense, with jobs in construction, manufacturing, and local service industries,” the Treasurer said.

“The project could deliver over $17 billion in exports and $12 billion to Queensland’s gross domestic product over 30 years and create up to 8,900 good jobs at its peak.

“That’s why Queensland has committed $15 million towards funding Stanwell’s FEED costs, including future planning for supply chain and workforce opportunities,” he said.

Publicly owned Stanwell Corporation’s partners include Iwatani Corporation, Kawasaki Heavy Industries Ltd, Kansai Electric Power Company, Marubeni, and the APA Group.

Minister for Energy, Hydrogen and Renewables Mick de Brenni said Queensland’s energy transformation was the greatest opportunity in a generation.

“This is how we sell Queensland’s sunshine, wind and future hydro power to the world”

“The CQ-H2 project is helping write a new chapter in Queensland’s economic history as we become a global green hydrogen powerhouse,” Minister de Brenni said.

“The Queensland Government is sending a very clear message to the world that we will be a global player for reliable, affordable and clean energy.”

The feasibility study found the CQ-H2 Project is technically feasible and commercially viable with appropriate early government support.

Stanwell CEO, Michael O’Rourke, said “The FEED study, which is subject to final approval by consortium members, will provide the detail required to support a final investment decision,” said Mr O’Rourke.

“With high-calibre expertise across the supply chain including potential off-takers, the project is on track for first hydrogen production in 2027.

Key milestones achieved by the CQ-H2 project over the past 18 months include:

1. secured land for the Hydrogen Production Facility through Economic Development Queensland in Aldoga near Gladstone (April 2021)
2. secured funding from the Japanese Government (Ministry of Economy, Trade and Industry (METI) to support Japanese partners’ contribution to the Feasibility Study (June 2021)
3. signed a Memorandum of Understanding with the CQ-H₂ consortium and commenced the Feasibility Study (September 2021)
4. secured Australian Renewable Energy Agency (ARENA) funding of $2.17 million for the Feasibility Study (September 2021)
5. Stanwell signed a Memorandum of Understanding with Acciona to source energy from the Aldoga Solar Farm for the CQ-H₂ Project (December 2021)
6. secured $69.2 million from the Australian Government for the Stanwell-led Central Queensland Hydrogen Hub, which includes funding for common user infrastructure that will support CQ-H₂ project (April 2022, confirmed through October 2022 Federal Budget)
7. completed a detailed Feasibility Study (June 2022)
8. Queensland Government announced FEED funding of $15 million through the Queensland Renewable Energy and Hydrogen Jobs Fund (June 2022)
9. signed a Memorandum of Understanding to jointly fund a pre-FEED stage to complete planning required to commence FEED in early 2023 (November 2022).