Large-scale hydrogen project in Queensland starts FEED study

May 26 (Renewables Now) - A consortium led by Queensland government owned energy company Stanwell Corp will start the Front End Engineering Design (FEED) study for the ambitious Central Queensland hydrogen (CQ-H2) project in Gladstone after securing the needed funds, it was announced today.

The AUD 117 million (USD 76m/EUR 71m) in funding for the study includes commitments from the consortium members, AUD 20 million from the Australian Renewable Energy Agency (ARENA) and AUD 15 million from the Queensland government’s Queensland Renewable Energy and Hydrogen Jobs Fund.

The CQ-H2 project will supply renewable hydrogen to Japan and Singapore, through its various carriers, as well as to customers in Central Queensland. Initially it will involve the installation of up to 640 MW of electrolysers, with commercial operations planned to begin from 2028.

The FEED will enable a final investment decision (FID), targeted for late 2024.

The consortium includes Japanese partners Iwatani Corp, Kansai Electric Power Company and Marubeni Corp. Singapore’s Keppel Infrastructure has now also joined the project consortium. Keppel, together with Incitec Pivot, is separately developing a green ammonia production facility in Gladstone, which will source green hydrogen from CQ-H2.

CQ-H2 will start with production of 200 tonnes per day of hydrogen and scale up in steps as additional offtake agreements are signed, potentially reaching 800 tonnes per day in 2031.

(AUD 1 = USD 0.653/EUR 0.608)