Queensland’s new LNP government has refused to provide further funding for the proposed $12.4 billion Central Queensland Hydrogen (CQ-H2) project, led by state-owned energy company Stanwell in partnership with Japan’s Iwatani and Marubeni, and Singapore’s Keppel.
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The proposed CQ-H2 is a green hydrogen production plant with 720MW of electrolysers at Aldoga, near Gladstone, capable of producing 200 tonnes per day of hydrogen from 2029.
Queensland treasurer and energy minister David Janetzki said the funding required for the project did not align with the Crisafulli government’s focus for energy generators to “provide affordable, reliable and sustainable power”.
The previous Labor government had committed funding of $69.2 million towards the project, which would help build infrastructure including a hydrogen electrolyser, pipeline, and underground hydrogen storage. Industry would match the Commonwealth’s contribution—bringing total investment to at least $138 million.
While news of the funding pull is undoubtedly a major blow for Stanwell and its project partners, Gladstone mayor Matt Burnett insisted the project would go ahead with the investments committed by the federal government, and international and private equity.
“I met with Premier David Crisafulli on Friday and I am meeting with the federal minister for energy Chris Bowen tomorrow with the clear message that this project is good for Gladstone, Queensland and Australia,” Burnett said.
Stanwell, however, said it was considering the state government’s announcement and reviewing its involvement in other hydrogen projects.
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The Crisafulli Government has also scrapped the Labor government’s Pioneer-Burdekin Pumped Hydro Project proposed for the Eungella region, 75km west of Mackay, and imposed strict new planning regulations for wind farms, with all wind farm developments becoming impact assessable from February 3, 2025.
