The Australian state of Queensland is looking toward a brighter future — a future of clean energy, as Stanwell blazes a trail towards hydrogen with its global-scale Central Queensland Hydrogen Project.
Stanwell is a major provider of electricity and energy solutions to Queensland, the National Electricity Market, and large energy users along the eastern seaboard of Australia.
It is now setting its sights on driving the development of the hydrogen industry in the state.
The Stanwell-led Central Queensland Hydrogen (CQ-H2) Project, with commercial operations planned to commence from 2029, ranks among the world’s top 10 hydrogen projects according to Deloitte analysis and has been shortlisted by the Federal Government’s $2 billion Hydrogen Headstart Program, which aims to catalyse Australia’s hydrogen industry.
Stanwell is working with Japan’s Iwatani Corporation, Kansai Electric Power Company, Marubeni, and Singapore’s Keppel Infrastructure to undertake front-end engineering design (FEED) study for the project, with a commitment of $117 million from government and consortium partners.
This includes securing $15 million from the Queensland Renewable Energy and Hydrogen Jobs Fund and $20 million from the Australian Renewable Energy Agency.
The CQ-H2 Project involves the development of a hydrogen production facility, hydrogen gas pipeline, and hydrogen liquefaction facility, as well as the supply of hydrogen to an ammonia production facility.
Authorities have high expectations for the CQ-H2 Project, as Chris Bowen, Federal Minister for Climate Change and Energy, said that similar projects are critical to scaling up Australia’s green hydrogen industry.
“Projects like the CQ-H2 Project could lead the way in exporting renewable hydrogen to the international market,” Bowen said.
“Japan, Korea, and China are three of our largest trading partners and have all made clear commitments to increase the use of hydrogen, with a focus on establishing international supply chains for imports.”
Creating green profits
According to Deloitte, support for clean hydrogen as a reliable, sustainable energy source has been strengthening, and the market is expected to surpass the value of the liquid natural gas trade by 2030, growing further to $2.08 trillion per year by 2050.
Deloitte claims that regions currently able to produce cost-competitive hydrogen in quantities exceeding domestic needs are positioning themselves as future hydrogen exporters—supplying other less-competitive regions and helping to facilitate the energy transition smoothly. Notably, global hydrogen trade is projected to generate more than $416 billion in annual export revenues by 2050.
The CQ-H2 Project aligns well with Deloitte’s prediction. The project aims to deliver renewable hydrogen via different carriers to Japan and Singapore, as well as supplying large domestic industrial customers in Central Queensland. Commercial operations are planned to commence from 2029.
The project will have up to 720MW of green hydrogen electrolysers, fed by wind and solar, and is expected to produce 200 tonnes of hydrogen a day by 2029, rising to up to 800 tonnes a day by 2031.
The economic benefits of the CQ-H2 Project will be substantial.
According to modelling undertaken by Deloitte for Stanwell, the CQ-H2 Project at its peak will provide more than 8900 new jobs. The project will also deliver $17.2 billion in hydrogen exports and add $12.4 billion to Queensland’s gross state product over its 30-year life.
Stanwell CEO Michael O’Rourke said the company is proud to be leading the CQ-H2 Project with partners.
“The advancement of this important hydrogen project is great news for Central Queensland, where the project could create thousands of jobs and deliver billions of dollars in economic benefit,” O’Rourke said.
“We are proud to be leading the CQ-H2 Project with our partners, which demonstrates our commitment to driving the development of Queensland’s hydrogen industry and other new technologies,” O’Rourke said.
Sailing smoothly to future
Stanwell has been one of Queensland’s largest electricity generators for decades, it proudly provides the state with reliable electricity at prices that are affordable as the industry transitions to a lower carbon future.
The company commits to investing $9 billion in wind, solar, and batteries by 2028, connecting 9 to 10GW of the state’s 22GW renewable energy target. By 2035, these assets will contribute to 40 per cent of Queensland’s energy demand with clean energy.
With the largest pipeline of renewable generation and storage in development, Stanwell is on track to meet Queensland’s renewable energy target, gradually repurposing existing power stations into clean energy hubs aligned with policies.
As a company well-experienced in coal-fired power stations, Stanwell also understands that the future of the energy sector is renewable, and is sailing towards that future smoothly with knowledge, experience, sense of duty and support from different stakeholders.
For more information, visit stanwell.com
This article featured in the February edition of ecogeneration.
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