Australia allocates A$20mn to Stanwell for Queensland hydrogen project
The Australian Renewable Energy Agency (ARENA), on behalf of the Australian government, has allocated A$20mn in funding to Stanwell Corp. for a front-end engineering and design (FEED) study of a renewable hydrogen project in Gladstone, Queensland, it said on May 26.
The project, known as the Central Queensland Hydrogen (CQ-H2) project, aims to install up to 640 MW of electrolysers to produce renewable hydrogen for commercial operations starting in 2028. The FEED study is scheduled to be completed by mid-2024.
Initially, the project will produce 200 metric tons/day of hydrogen, which will be purchased by offtakers and converted into renewable ammonia and liquefied hydrogen for export. As additional offtake agreements are secured, the production capacity will ramp up in increments of 200 mt/d, reaching 800 mt/d for full-scale commercial operations by 2031.
The FEED study will also explore the development of a hydrogen liquefaction facility at the Port of Gladstone, with a target production capacity of 400 mt/d of liquefied hydrogen for export by the end of 2030.
To execute the project, a consortium consisting of companies from Australia, Japan, and Singapore has been formed. The consortium members include Stanwell, Iwatani Corporation, Kansai Electric Power Company, Keppel Infrastructure, and Marubeni Corporation. These partners will bring their specialized expertise in various aspects of the hydrogen production supply chain.
Stanwell and the consortium members previously conducted a feasibility study for the project, which received A$2.16mn in funding from ARENA. The feasibility study confirmed the technical feasibility and potential commercial viability of the project with appropriate government support. The FEED study will build upon the outcomes of the feasibility study and develop the necessary technical, commercial, and social requirements to facilitate a final investment decision, construction, and commissioning.
The CQ-H2 project aims to leverage the renewable energy portfolio of Stanwell, including Power Purchase Agreements (PPAs) with wind and solar farms in Queensland. The hydrogen production and liquefaction facilities will be grid-connected and supported by renewable energy sources.