Queensland is taking another significant step towards becoming a global green hydrogen powerhouse, with the state’s largest renewable hydrogen development – the CQ-H2 project – completing its feasibility study and starting preparations for a Front End Engineering Design (FEED) study in early 2023.
Publicly owned electricity company, Stanwell Corporation, is developing the project with international partners, including Iwatani Corporation, Kawasaki Heavy Industries Ltd, Kansai Electric Power Company, Marubeni, and Australian energy infrastructure business APA Group.
The project is expected to deliver over $17.2 billion in hydrogen exports and $12.4 billion to Queensland’s gross domestic product over its 30-year lifespan and, at its peak, create up to 8,900 new Queensland jobs in construction, heavy manufacturing, and a range of local service industries.
Stanwell CEO, Michael O’Rourke, said Stanwell and its partners had recently completed a feasibility study for the project and were working together to lock in final arrangements to progress the project to FEED.
The feasibility study, publicly released on Stanwell’s website, found that the CQ-H2 Project is technically feasible and commercially viable with appropriate government support in the initial phases.
The consortium recently signed a Memorandum of Understanding to jointly fund a pre-FEED stage to complete the planning required to commence FEED in early 2023 (subject to final approvals by each consortium partner).
“The FEED study, once commenced, 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 offtakers, the project is on track for first hydrogen production in 2027.
“The CQ-H2 project will ultimately scale up to produce 800 tonnes per day of clean, green hydrogen by the early 2030s.
“We’re excited to play a key role in developing Queensland’s renewable hydrogen industry and creating employment and economic benefits to the state for years to come.”
Read the most up to date Fuel Cell and Hydrogen Industry news at FuelCellsWorks
Key milestones achieved by the CQ-H2 project over the past 18 months include:
- secured land for the Hydrogen Production Facility through Economic Development Queensland in Aldoga near Gladstone (April 2021)
- secured funding from the Japanese Government (Ministry of Economy, Trade and Industry (METI) to support Japanese partners’ contribution to the Feasibility Study (June 2021)
- signed a Memorandum of Understanding with the CQ-H2 consortium and commenced the Feasibility Study (September 2021)
- secured Australian Renewable Energy Agency (ARENA) funding of $2.17 million for the Feasibility Study (September 2021)
- Stanwell signed a Memorandum of Understanding with Acciona to source energy from the Aldoga Solar Farm for the CQ-H2 Project (December 2021)
- 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 the CQ-H2 project (April 2022, confirmed through October 2022 Federal Budget)
- completed a detailed Feasibility Study (June 2022)
- Queensland Government announced FEED funding of $15 million through the Queensland Renewable Energy and Hydrogen Jobs Fund (June 2022)
- signed a Memorandum of Understanding to jointly fund a pre-FEED stage to complete the planning required to commence FEED in early 2023 (November 2022).
