Funding provided to Stanewell's hydrogen study in Qld

16th September 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – The Australian government is providing up to $2.17-million through the Australian Renewable Energy Agency (ARENA) to support the A$10.5-million needed for the study for a large-scale hydrogen electrolyser and liquefaction facility in Gladstone, Queensland.

Energy infrastructure business APA Group this week joined the consortium of Australian and Japanese energy players which are aiming to establish Queensland’s largest green hydrogen project.

APA will join Stanwell and Japanese companies Iwatani Corporation, Kawasaki Heavy Industries, Kansai Electric Power Company and Marubeni to commence a detailed feasibility study into the development of a large-scale green hydrogen project in Central Queensland.

The project proposes to export green hydrogen to Japan and supply large industrial customers in the Central Queensland region to support emissions reduction for the domestic industry.

If feasible, the project would initially aim to produce up to 36 500 t/y of clean hydrogen for export to Japan from 2026. Stanwell then plans to scale up to 328 500 t/y in 2031 to meet forecast Japanese demand.

Importantly, the project will create new economic opportunities and jobs. More than 5 000 new jobs are expected to be created, and A$4.2-billion in hydrogen exports, said Minister for Energy and Emissions Reduction Angus Taylor, noting that the facility would also supply local businesses with clean energy, helping energy-intensive heavy industries across Queensland to lower their carbon footprints.

Taylor said the project was another important step in establishing a hydrogen supply chain with Japan, where there is strong demand for Australia's clean energy.

“We want Australia to be a hydrogen global powerhouse and projects like this are critical to growing demand for Australian hydrogen and industry development.

“This project demonstrates the importance of government, industry and international partners working together to accelerate the development of low emissions technologies.

“The government is committed to developing export and domestic supply chains, establishing hydrogen hubs and backing projects that build domestic demand for hydrogen. Gladstone is an ideal location to help deliver this.”

Under the government’s Technology Investment Roadmap, the federal government has set the goal of producing hydrogen at less than A$2/kg, the price at which hydrogen becomes competitive with higher emitting alternatives.

The government has invested more than A$1-billion to support Australia’s clean hydrogen industry, including A$275.5-million in the 2021/22 Budget to support the development of regional hydrogen hubs with Gladstone identified as a prospective location.

Furthermore, Australia and Japan are working to accelerate the development and commercialisation of low emissions technologies.

The Stanwell project also builds on the already strong cooperation through initiatives and statements such as the A$496-million Hydrogen Energy Supply Chain coal-to-hydrogen project in the Latrobe Valley and the Australia-Japan Joint Statement of Cooperation on Hydrogen and Fuel Cells.

Along with Japan, the government has also entered into partnerships with Germany, the UK, and Singapore to accelerate the development of low emissions technologies, including hydrogen, to drive investment and job creation in Australia.

Edited by Creamer Media Reporter

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