<article><p class="lead">Australia's proposed Central Queensland hydrogen project (CQ-H2) will receive A$35mn ($23mn) in government funding for initial engineering, ahead of a final investment decision planned for late 2024.</p><p>The Queensland and federal governments will commit A$15mn and A$20mn respectively towards a A$117mn engineering report for the Gladstone-based CQ-H2, with the federal contribution allocated through the Australian Renewable Energy Agency. The balance will be funded by the consortium's investors, including Queensland state-owned power utility Stanwell along with Japanese firms Iwatani, Kansai Electric Power and Marubeni.</p><p>"The government is committed to making Australia a global hydrogen leader and projects like the CQ-H2 project could lead the way in exporting renewable hydrogen to the international market," federal energy minister Chris Bowen said.</p><p>CQ-H2 is one of Australia's largest planned hydrogen hubs. Queensland's government envisages giant renewable energy zones inland of the site to power CQ-H2's electrolysers to produce as much as 800 t/d of green hydrogen by the early 2030s.</p><p>But the proposal faces <a href="https://direct.argusmedia.com/newsandanalysis/article/2400295">significant obstacles</a> as decarbonising Gladstone's existing industry is estimated to require at least 34,000MW, which is more electricity than Queensland's government plans to build by 2035 under its <a href="https://direct.argusmedia.com/newsandanalysis/article/2375045">80pc renewable</a> power goal.</p><p>Gladstone is one of seven hydrogen hubs identified as part of Australia's 2019 national hydrogen strategy, presently <a href="https://direct.argusmedia.com/newsandanalysis/article/2423820">under review</a> as the government digests the impact of the US' Inflation Reduction Act.</p><h3>Keppel, IPL plan partnership</h3><p class="lead">Singapore's Keppel has also announced it will partner with Australian fertiliser and industrial chemicals group Incitec Pivot (IPL) to investigate developing a green ammonia facility, with Keppel to join the CQ-H2 consortium.</p><p>The announcement comes one year after Australian chemicals and explosives firm Orica agreed to explore a similar green ammonia <a href="https://direct.argusmedia.com/newsandanalysis/article/2321512">offtake and supply agreement</a> at Gladstone. </p><p>Keppel described its participation in the consortium as providing the company with a "competitive advantage of having access to a ready and reliable source of green hydrogen as feedstock for a green ammonia production facility, which it plans to develop with IPL and other potential partners". </p><p class="bylines">By Tom Major</p></article>
