Stanwell progresses renewable hydrogen in Gladstone

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

The Australian Renewable Energy Agency (ARENA) has announced $20 million in funding to Stanwell Corporation Limited to support a front-end engineering and design (FEED) study for a large-scale renewable hydrogen project in Gladstone, Queensland.

The $117 million project will finalise the development stage of the Central Queensland Hydrogen (CQ-H2) Project, which will initially involve the installation of up to 640MW of electrolysers to produce hydrogen for commercial operations commencing in 2028. The hydrogen production facility will produce gaseous renewable hydrogen that will be purchased by offtakers and converted to renewable ammonia and liquefied hydrogen for export.

Related article: New Gladstone ferry to be hydrogen powered

The facility will initially produce 200 tonnes per day (tpd) of hydrogen and ramp up in 200 tpd increments as additional offtake agreements are secured, with full scale anticipated to be 800tpd for commercial operations in 2031.

The study will also investigate the development of a hydrogen liquefaction facility based at the Port of Gladstone that will produce 400tpd of liquefied hydrogen for export by the end of 2030. 

A consortium of companies from Australia, Japan and Singapore has been formed to leverage the specialist expertise provided by each of the partners across the hydrogen production supply chain. Along with Stanwell, the consortium members include Iwatani Corporation (Iwatani), Kansai Electric Power Company (Kansai), Keppel Infrastructure (Keppel) and Marubeni Corporation (Marubeni).

The project is uniquely placed to explore the potential of a large-scale renewable hydrogen production facility that could be used to decarbonise Gladstone’s existing industrial base and create an export industry. 

Both the hydrogen production and liquefaction facilities will be grid connected, supported by Power Purchase Agreements (PPAs) with Queensland wind and solar farms, provided through Stanwell’s renewable energy portfolio.

Related article: Multi-billion-dollar H2-Hub Gladstone enters first phase

Stanwell CEO Michael O’Rourke said, “We are immensely grateful for the continued support that ARENA has provided to the CQ-H2 project. Their support has been instrumental in getting us to this important point, and this funding will be a vital foundation for the next steps of this journey on which we continue to move forward together—empowering Australia’s hydrogen economy.”

The FEED study is expected to be completed by mid 2024. The CQ-H2 project would create an estimated 8,900 jobs at its peak.

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