Local Jobs and Global Decarbonisation

Published Thursday, 21 December, 2023 at 03:38 PM

Minister for Energy and Clean Economy Jobs
The Honourable Mick de Brenni

  • Queensland hydrogen project shortlisted for $2 billion Hydrogen Headstart program
  • Project to create 8,900 regional jobs 
  • 100,000 clean energy jobs forecast 

A Queensland led hydrogen project that will create 8,900 jobs and slash emissions has been shortlisted for a flagship $2 billion Commonwealth hydrogen program.

Minister for Energy and Clean Economy Jobs, Mick de Brenni, today welcomed the announcement that Stanwell-led CQH2 has been recognised as one of the nation’s best hydrogen projects -  announced as one of six projects on the shortlist. 

The Albanese Government's Hydrogen Headstart program complements the Queensland Energy and Jobs Plan to enable decarbonisation of local industry, ensuring exports remain competitive and local supply chains reduce their emissions.

The Queensland Energy and Jobs Plan is forecast to create 100,000 jobs in the new clean energy economy, with hydrogen poised to deliver 10,000 of these and deliver $33 billion in economic activity by 2040. 

The CQH2 Project involves both local and exports based off-take, including the development of a hydrogen production and liquefaction facility for export to Singapore and Japan.

This will help decarbonise our trade partners’ energy generation, and supply emissions-free hydrogen-to-ammonia for the proposed Gladstone manufacturing facility.

The CQ-H2 Project is already undertaking a Front End Engineering Design (FEED) study, with a commitment of $117 million from consortium partners and government. 

This is supported by $15 million from the Queensland Government’s Renewable Energy and Hydrogen Jobs Fund, and $20 million from ARENA.

The FEED study represents the largest investment in an Australian renewable hydrogen project of its kind to date.

CQH2 will now be invited to submit full applications to access funding from the Hydrogen Headstart Program.

Commercial operations are planned to start in 2029 with the supply of 200 tonnes per day of hydrogen to an ammonia facility, growing to 800 tonnes per day at full scale.

Quotes attributable to Minister de Brenni:
“The Miles Government welcomes this announcement from Minister for Climate Change and Energy, Chris Bowen MP, and the Albanese Government’s support for this major job creating project in Central Queensland.

“CQH2 brings new jobs in manufacturing, helps Queensland's agricultural sector to decarbonise, as well as supporting our international partners to slash their carbon emissions.

“Over time, eliminating fossil fuels from Queensland supply chains and replacing them with clean energy means our agricultural jobs will remain safe in a carbon emissions conscious marketplace.”

Quotes attributable to Michael O’Rourke, CEO Stanwell
“Stanwell, and its international consortium partners, have set out an ambitious strategy for what we will achieve as a business between now and 2035 and we are proud of our role contributing to Queensland’s energy and economic transformation.  

“A key component of our strategy is to drive the development of Queensland's hydrogen industry. 

“This Australian Government Hydrogen Headstart announcement reinforces that our hydrogen development strategy is on track, and we appreciate the Australian and Queensland Government’s ongoing support for the Stanwell led Central Queensland Hydrogen Project.” 

Further information

  • Hydrogen Headstart was announced in the 2023-24 May Budget and the Australian Government is investing in the program through Australian Renewable Energy Agency (ARENA) which co-designed the program with the Department of Climate Change, Energy the Environment and Water (DCCEEW).
  • The CQ-H2 Project involves:
    • the development of a Hydrogen Production Facility at Aldoga, near Gladstone
    • the development of a Hydrogen Transfer Facility (pipeline)
    • supply of hydrogen to an ammonia production facility
    • the development of a Hydrogen Liquefaction Facility and ship loading facilities at Gladstone Port.
  • The project aims to deliver renewable hydrogen via its different carriers, to Japan and Singapore, as well as supplying large domestic customers in Central Queensland.
  • The project includes:
    • $82 million from consortium members Iwatani Corporation, Kansai Electric Power Company, Marubeni, Keppel Infrastructure and Stanwell Corporation
    • $15 million from the Queensland Government Renewable Energy and Hydrogen Jobs Fund and
    • $20 million from ARENA.

Media Contact – Elise Williams 0482 503 675