Central QLD Hydrogen Project anticipated to create up to 9000 jobs

New milestones have been unlocked on the Central Queensland Hydrogen Project (CQ-H2) in Gladstone, taking this green hydrogen development a step further towards reality. 

The Queensland and Australian Governments have teamed up to jointly fund $117 million to get Front End Engineering Design (FEED) underway on the State’s biggest renewable hydrogen project. This is the largest investment in green hydrogen in Australia’s history to date. 

Once FEED is completed, it will take the project a step closer to Final Investment Decision – planned for late 2024 – and major construction can begin. 

“The government is committed to making Australia a global hydrogen leader and projects like CQ-H2 Project could lead the way in exporting renewable hydrogen to the international market,” Federal Minister for Climate Change and Energy Chris Bowen said. 

“Because of the investments we’re making, the Queensland economy will reap the benefits of the global clean energy transition, while ensuring Queensland has more cheaper, cleaner renewable energy to power our businesses and homes,” Premier Annastacia Palaszczuk said. 

Artist impression of the proposed hydrogen electrolysis facility (source: Stanwell)

In addition to the announcement of this significant investment, the Queensland Government also welcomes the announcement of a partnership between Singapore-based Keppel and Incitec Pivot. 

The two companies have signed a Memorandum of Understanding and will be investigating the construction of a green ammonia production facility in Gladstone, which will be part of CQ-H2. 

“Keppel’s strong track record in developing and operating large-scale energy and environmental infrastructure combined with the expertise and experience of our esteemed parters will enable us to produce, store and transport green hydrogen and ammonia in a safe, scalable and cost competitive manner for end-users in Australia, Singapore and globally,” Keppel Infrastructure Division CEO Cindy Lim said. 

“IPL is pleased to be progressing this exciting opportunity with Keppel and the Queensland Government. 

“This innovative international partnership with Keppel is one of several decarbonisation projects we are progressing as part of our Ambition to be Net Zero by 2050,” Incitec Pivot Managing Director and CEO Jeanne Johns said. 

The development of a green hydrogen export industry in Gladstone will help boost economic opportunities for Queensland as the project is expected to create about 9,000 jobs and generate more than $17.2 billion in hydrogen exports over its 30-year life. 

CQ-H2 is going to be powered by renewable energy such as solar and wind, adding to the project’s sustainability. The project also complements other planned renewable hydrogen developments in Gladstone, including the Australian Government’s Regional Hydrogen Hubs program. 

“Queensland’s existing strengths – our wind, solar and skilled workforce – make us the perfect place to accelerate the development of green hydrogen. 

“We’re working with industry to unlock more opportunities to create more jobs as the world shifts towards decarbonisation,” Deputy Premier Steven Miles said. 

Proposed supply chain (source: Stanwell)

This project is also part of the State Government’s new-industry development strategy, Queensland Renewable Energy and Hydrogen Jobs Fund, and the Queensland Energy and Jobs Plan. 

When the new facility is up and running, CQ-H2 is estimated to produce 200 tonnes of hydrogen a day by 2028, increasing to up to 800 tonnes daily by 2031. The hydrogen produced will then be liquified or converted to ammonia for export and potentially local industry offtake. 

“The Palaszczuk Government is working hard to drive the state’s hydrogen industry forward, to create highly skilled jobs, especially in regional Queensland,” Queensland Treasurer and Minister for Trade and Investment Cameron Dick said. 

“Green hydrogen is the next resource frontier for a world hungry for renewables, and it’s Queensland’s green hydrogen industry that will ensure the greatest climate, jobs, and export opportunity in a generation,” Queensland Minister for Energy, Renewables and Hydrogen Mick de Brenni said. 

CQ-H2 is jointly funded by the Australian and Queensland Governments, with additional funding committed by consortium partners Iwatani Corporation (Japan), Kansai Electric Power Company (Japan), Marubeni Corporation (Japan), Keppel Infrastructure (Singapore), and Queensland’s publicly owned Stanwell Corporation. 

“This investment will support the emerging hydrogen and renewables sector that is set to be a gamechanger for Gladstone and will create good local jobs and economic benefits for the region for years to come,” Member for Gladstone Glenn Butcher said. 

“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,” Stanwell CEO Michael O’Rourke said. 

Source: Queensland Government – Media Statements (1, 2); Stanwell Corporation