Queensland’s hydrogen credentials receive another boost, securing international confidence in Gladstone project

15 September 2021

Queensland has taken another step towards becoming a renewable hydrogen production and export powerhouse, with four new members announced in the consortium between Stanwell and Japanese hydrogen supplier Iwatani Corporation (Iwatani).

The announcement of the consortium members which include Japanese companies Kawasaki Heavy Industries, Kansai Electric Power Company and Marubeni, and Australian energy infrastructure business, APA Group, is a show of international confidence in Queensland’s growing reputation as an ideal location for renewable hydrogen projects.

Comprising expertise across the hydrogen supply chain (renewable energy, hydrogen production, liquefaction, shipping and potential offtake), the consortium will commence a detailed feasibility study into the development of a large-scale renewable hydrogen project in Central Queensland.

If progressed, the project will export renewable hydrogen to Japan, as well as supply large industrial customers in the Central Queensland region to support emissions reduction for domestic industry by 2026.

Stanwell Acting Chief Executive Officer, Adam Aspinall, said Queensland’s relationship with such high quality international and Australian counterparts would be critical in further developing the state’s emerging hydrogen industry and putting Queensland on the map as a reliable renewable energy exporter.

“Queensland has a unique advantage in the production of renewable hydrogen, with our close proximity to Asia, renewable energy resources, established infrastructure and recognised manufacturing capabilities,” Mr Aspinall said.

“Exploring opportunities for collaboration at commercial scale and investing in hydrogen production is vital if Queensland is to harness the significant economic benefits and job creation opportunities hydrogen would bring to our local communities.”

Mr Aspinall said Stanwell welcomed the opportunity to work alongside some of the industry’s best on the development of Central Queensland’s large-scale renewable hydrogen industry.

“Stanwell is excited to be leading the development of Queensland’s next big industry. We believe hydrogen has an important role to play in supporting electricity security and reliability and reinforcing renewable energy integration and investment in Queensland,” Mr Aspinall said.

“While there’s still a way to go for hydrogen to be commercial, collaboration with key partners across all parts of the supply chain is critical to helping drive down the cost of hydrogen technologies and supporting the development of the industry.

“The idea that Queensland’s very own energy generators and ports could play a key role in meeting global hydrogen demand, as well as supply local industry, is exciting.”

APA Group CEO and Managing Director, Rob Wheals, said he was thrilled to continue to support a lower carbon future and opportunities to unlock high quality infrastructure solutions.

“Queensland has some of the best sun and wind resources in Australia, making it well placed to not only develop an export hydrogen supply chain, but demonstrate the benefits of unlocking renewable hydrogen in our regions,” Mr Wheals said.

“Australia’s advantages in hydrogen are enormous and this project could be a game-changer in helping Queensland develop a hydrogen industry at scale.”


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Supporting information

  • When built, the proposed renewable hydrogen project would be the largest in Queensland. Commencing production in the mid-2020s, the project would scale up to over 3,000 MW of electrolysis capacity by the early 2030s.
  • Pending the successful outcome of the feasibility study, the consortium will complete a Front End Engineering Design phase with a view to reaching a Final Investment Decision in 2022.
  • All consortium partners are providing in-kind and financial contributions towards the studies. Funding contributions towards the $10.4 million feasibility study have been received from the Australian Renewable Energy Agency (ARENA) (up to $2.17 million) and the Japanese Ministry of Economy, Trade and Industry (METI).
  • Alongside the feasibility study, Stanwell will also undertake local workforce and manufacturing development activities to support the growth of the renewable hydrogen industry in Central Queensland.
  • In February 2021, Stanwell completed an Expressions of Interest process to identify high quality, Queensland-based renewable energy projects that may provide renewable energy to the project.
  • In June 2021, Stanwell secured land for the proposed 3,000 MW renewable hydrogen electrolysis facility at Aldoga, 20 km west of Gladstone.