Funds boost brings massive green hydrogen scheme closer
A massive renewable hydrogen project is a step closer after millions in joint government funding was committed to the central Queensland scheme.
The Australian Renewable Energy Agency will provide $20 million, the Queensland government $15 million and consortium partners will stump up the rest of the $117 million to assess the feasibility and design of the project.
Located in Gladstone and in partnership with consortium backers, the project proposes installation of up to 640 megawatts of electrolysers to produce hydrogen for commercial operation.
It is hoped the Central Queensland Hydrogen (CQ-H2) project can produce 800 tonnes a day of green hydrogen by the end of the decade - enough to fuel Australia's heavy vehicle fleet twice over.
Investment into the front end engineering design will bring the project one step closer to a final investment decision slated late next year.
Early estimates indicate the project could deliver almost 9000 jobs and over $17.2 billion in hydrogen exports over its 30-year life through gaseous renewable hydrogen converted to renewable ammonia and liquefied hydrogen for export.
The Albanese and Palaszczuk government said the money was the largest investment in green hydrogen in the nation's history.
Federal Climate Change and Energy Minister Chris Bowen said the project would bolster an already-growing export market for clean and renewable energy.
"The government is committed to making Australia a global hydrogen leader and projects like the CQ-H2 Project could lead the way in exporting renewable hydrogen to the international market," he 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."
Queensland Premier Annastacia Palaszczuk was pleased to see continued investment in renewables across the state, coinciding with the government's 10-year energy plan.