Australian government is investing $437 million to build a 2.5GW green hydrogen energy center

The Australian government said it would invest 69.2 million Australian dollars ($43.7 million) in the hydrogen energy center. The center plans to store the green hydrogen produced underground and transport it to local ports for export to Japan and Singapore.

Federal Minister for Climate Change and Energy Chris Bowen said construction of the first phase of the Central Queensland Hydrogen Centre (CQ-H2) will begin in early 2024.

According to Chris Bowen, the centre will achieve an annual production of 36,000 tonnes of green hydrogen in 2027 and 292,000 tonnes for export by 2031. The project is being led by Stanwell, the Queensland government's power company, and is being developed by Japan's Iwatani, Kansai Electric Power, Maruki and Singapore-based Kaibo Infrastructure.

Materials on Stanwell's website indicate that the project will use an electrolyzer of 2,500 MW, with initial commercial operations to begin in 2028 and the remainder to be operational in 2031.

Stanwell Hydrogen project managing director Phil Richardson said final investment decisions on the initial phase would not be made until the end of 2024, suggesting the minister may have been overly optimistic. The project is planned to include solar power, electrolyzers, a hydrogen pipeline connected to the Gladstone port, a hydrogen supply for ammonia manufacturing, and a hydrogen liquefaction facility at the port and a loading facility. Large industrial users in Queensland will also receive green hydrogen.

The front-end engineering design (FEED) study for CQ-H2 began in May 2024.

Queensland's Minister for Energy, Renewable Energy and Hydrogen, Mick de Brenni, said Queensland had a wealth of natural resources and a clear policy framework to support green hydrogen. The hydrogen industry will be worth $33 billion by 2040, boosting economic growth, creating jobs and helping to decarbonize the world.

The Australian government has committed $70 million to the Townsville Hydrogen Hub in north Queensland and $48 million to the Hunter Valley Hydrogen Hub in New South Wales. $70 million to the Pilbara and Kwinana hubs in Western Australia, $70 million to the Port Bonython Hydrogen Hub in South Australia (with an additional $30 million from the state government), And a $70 million investment in the Tasmanian Green Hydrogen Hub.

The Australian government said in a press release that Australia's hydrogen industry is forecast to generate A $50 billion in gross domestic product by 2050, creating tens of thousands of jobs as Australia transforms into a renewable energy superpower.