Govt injects $69m into Central Queensland Hydrogen Hub

Rendered image of Stanwell's CQ-H2 project (hydrogen hub)
Stanwell's CQ-H2 project

The federal government has announced it will invest $69.2 million towards the Central Queensland Hydrogen Hub (CQ-H2) in Gladstone.

CQ-H2 will be capable of producing up to 292,000 tonnes of hydrogen a year by 2031— equivalent to fuelling more than double Australia’s heavy vehicle fleet.

Related article: Governments join to develop Port Bonython Hydrogen Hub

This investment will build infrastructure including a hydrogen electrolyser, pipeline, and underground hydrogen storage. The hub infrastructure will help support hydrogen production and use in Australia and overseas.

The consortium will be led by the Stanwell Corporation, with industry matching the Commonwealth’s contribution—bringing total investment to at least $138 million.
Importantly, construction will commence early next year, with the project operational in mid-2027.

In addition, the Commonwealth has previously announced funding for a 2.5MW electrolyser at Yarwun alumina refinery, which aims to deliver around 300 tonnes of hydrogen annually and demonstrate the use of hydrogen in the decarbonisation of alumina refining.

The government’s Regional Hydrogen Hubs program is delivering over half a billion dollars for hydrogen hubs in Gladstone, Townsville, Kwinana, the Pilbara, the Hunter, Bell Bay and Port Bonython.

Australia’s hydrogen industry is projected to generate $50 billion in additional GDP by 2050, creating tens of thousands of jobs in regional Australia as Australia transforms to a renewable energy superpower.

Minister for Climate Change and Energy Chris Bowen said, “Central Queensland is an energy export powerhouse and has helped keep the lights on for decades, and as global markets shift—it can reap the benefits of new industries like hydrogen too.

Related article: ATCO and BOC group in lead for SA’s Hydrogen Jobs Plan

“Gladstone has strong foundations to host a thriving hydrogen industry, creating thousands of local jobs and position Australia as a renewable energy superpower.

“Renewable hydrogen will play a big role in our path to net zero, helping cut emissions in hard-to-abate sectors, and the manufacturing of green metals and other products the world needs.”

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