A Stanwell-led hydrogen project, known as CQH2, has been shortlisted for a $2 billion flagship Commonwealth hydrogen program, signalling a significant boost for Queensland's economy. Recognised as one of the nation's best hydrogen initiatives, the project is one of six selected by the Federal Government's Hydrogen Headstart Program.
The initiative is in line with the Queensland Energy and Jobs Plan, which aims to decarbonise local industry, improve export competitiveness and reduce emissions in local supply chains.
The Queensland Energy and Jobs Plan is expected to create 8,900 jobs and 100,000 jobs in the clean energy sector, with hydrogen contributing 10,000 jobs and $33 billion in economic activity by 2040. The CQH2 project includes both local and export off-take, with a hydrogen production and liquefaction plant for export to Singapore and Japan.
The project aims to support the decarbonisation of energy generation in trading partner countries and provide zero emission hydrogen for a proposed manufacturing facility in Gladstone.
With a Front End Engineering Design (FEED) study underway, supported by a significant investment of $117 million from consortium partners and government sources, including $15 million from the Queensland Government's Renewable Energy and Hydrogen Jobs Fund and $20 million from ARENA, the CQH2 project represents a significant milestone in Australia's renewable hydrogen efforts.
Invited to submit full applications for funding under the Hydrogen Headstart Program, CQH2 aims to commence commercial operations in 2029, supplying 200 tonnes per day of hydrogen to an ammonia plant, with plans to scale up to 800 tonnes per day.