The Australian federal government has unveiled a commitment of $69.2 million to foster the development of the Central Queensland Hydrogen Hub (CQ-H2), a colossal green hydrogen initiative encompassing 2.2 gigawatts (GW). This undertaking, lauded by the state government as the most substantial green hydrogen project in the nation, will be spearheaded by the Stanwell Corporation—a Queensland government-owned energy entity. Notably, Stanwell matches the government’s investment, thereby amassing a grand total of $138 million for the project.
Minister for Climate Change and Energy, Chris Bowen, emphasised the pivotal role of renewable hydrogen in the journey to achieve net-zero emissions. This green hydrogen will prove instrumental in reducing emissions within challenging-to-abate sectors and facilitating the production of eco-friendly metals and other essential commodities on a global scale. Bowen also emphasised Central Queensland’s status as an energy export powerhouse and its potential to reap the rewards of emerging industries like hydrogen as international markets shift.
The project’s requirements encompass the installation of a hydrogen electrolyser, a pipeline network, an underground hydrogen storage facility, and connectivity to nearby solar farms. The anticipated timeline envisions construction commencement early in the coming year, with the project slated to become operational by mid-2027.
The development will be executed in phases, with the initial phase focusing on deploying up to 640 megawatts (MW) of electrolysers, capable of yielding up to 200 tonnes of green hydrogen daily by 2028. As the project scales up, government projections suggest that the hub could potentially churn out an impressive 292,000 tonnes of hydrogen annually (equivalent to 800 tonnes per day) by 2031. This hydrogen will undergo liquefaction or conversion into ammonia before being exported to markets in Japan, China, Korea, or Singapore.
Energy experts underscore the versatility of hydrogen, particularly in sectors like steel production and fertilisers, as well as for applications in long-distance aviation and shipping, where the use of electricity or batteries is challenging or unfeasible.
Recent developments signal an increased momentum for the CQ-H2 project. Stanwell Corporation recently announced a long-term off-take agreement for the 380 MW Aldoga solar farm, while the Front End Engineering Design work received approval last month.
Mick de Brenni, Queensland’s Minister for Energy, Renewables, and Hydrogen, recognises this period as pivotal for Queensland, with emerging industries set to drive growth and prosperity in the region. Hydrogen from Queensland is viewed as a game-changer on a global scale, capable of significantly reducing carbon emissions in industries that are traditionally difficult to decarbonise, such as heavy industry, transportation, shipping, and aviation. With abundant natural resources and a clear policy framework supporting green hydrogen, Queensland is poised to tap into an industry estimated to be worth $33 billion by 2040, thus bolstering the economy, creating employment opportunities, and contributing to global decarbonisation efforts.
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