PERTH (miningweekly.com) – ASX-listed Senex Energy and Queensland-based CS Energy will jointly produce green energy, developing the Kogan renewable hydrogen demonstration plant near Chinchilla.

The Kogan renewable hydrogen demonstration plant is a green hydrogen production facility that will be built next to CS Energy’s Kogan Creek power station. The project will include the co-location of a solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage and out-loading facility.

Queensland Minister for Energy, Renewables and Hydrogen Mick de Brenni said the state government was backing CS Energy with A$28.9-million for the demonstration plant and a refueller network.

“Green hydrogen is key to diversifying our energy sector, building on our long-term energy know-how in regional Queensland and attracting significant international investment in job-creating heavy manufacturing,” De Brenni said.

“This green hydrogen will be used in the latest stop on our Hydrogen Superhighway established with New South Wales and Victoria and help develop Australia’s energy independence via the transport sector.

“CS Energy and Senex Energy are both Queensland companies with complementary skills and experience and this means we can bring their more than 60 years of collective experience together to stake a claim in the growing hydrogen sector.

“Today’s announcement will contribute to the success of the Kogan demonstration plant and support Queensland’s ambitions to become a hydrogen and renewable energy superpower,” the Minister said.

Under the joint venture agreement, CS Energy will operate and hold 75% equity in the plant, while Senex Energy will hold 25% equity in the plant.

CS Energy CEO Andrew Bills said both companies recognised the enormous potential of renewable hydrogen to contribute to a low-carbon future in Australia.

“Senex Energy’s experience in the gas sector will be invaluable during the demonstration and as we evaluate future opportunities to increase renewable hydrogen production to commercial scale.

“CS Energy is excited to welcome Senex Energy as our partner at this key point in the project as we move to the construction phase later this year.

“There is a strong strategic alignment between CS Energy and Senex Energy around the opportunities the energy transformation will bring, enabling us to explore partnerships on other projects.”

Senex CEO Ian Davies said the company’s participation in the project underlined its commitment to the supply of reliable, affordable and sustainable energy that is vital to the economy and jobs.

“To ensure Queensland’s and Australia’s energy security, and reach net-zero targets, we need all forms of energy to work together. The natural gas sector is the ideal partner for development of a renewable hydrogen industry and that’s why we’re investing in this project,” Davies said.

Work on the demonstration plant is due to start on site in September this year.