Danish renewable energy developer European Energy has acquired a majority stake in a 3,600MW solar hydrogen project near the port of Gladstone with a focus on so-called “power to X technology.
The Pacific Solar Hydrogen Project aims to produce more than 100,000 tonnes of green hydrogen a year, and also become a hub for renewable energy production and “e-fuels.”
“It is one of the biggest projects that we or anyone in the world for that matter have undertaken,” said Thorvald Spanggaard, European Energy’s executive vice president and head of project development.
“We do believe that it is feasible and realistic to realise this project in 2026 not least because of the willingness of the local authorities in Australia to see the possibilities of moving ahead on the green transition and become a key exporter of the fuel of tomorrow.”
Plans for the Pacific Solar hydrogen were first unveiled in 2020 by a little known company called Austrom, led by several executives with experience in Australia’s renewables industry.
It said it had secured parcels of land near Callide and Gladstone, and not far from the coal generators that still operate there, with the view of creating a major new renewables hydrogen project – one of a number of similar proposals in the region along with Andrew Forrest’s interests and Energy Estate.
Catriona Mcleod, the country manager for European Energy in Australia, and a former investment director at Esco Pacific in Australia, said being a hub for renewable energy production, green hydrogen and e-fuels is the “logical next step” for Australia.
“European Energy is now advancing wind and solar opportunities across the NEM, and as one of the frontrunners in e-fuels and green hydrogen I believe we are very well suited to accelerate the speed in which these projects can be realised,” she said.
McLeod says the company has rights for the development 4.4GW of wind and solar projects, and is looking at a total of 5GW of potential opportunities in wind and solar in Victoria, NSW and Queensland.
“We’re very excited about having a major impact in Australia,” she told RenewEconomy.
European Energy, founded in Denmark in 2004, describes itself as a global leader in renewable energy development, construction and operations, as well as ‘Power-to-X’ technology.
Power-to-X involves conversion of renewable electricity from solar or wind farms into other forms of energy, such as green hydrogen and e-Methanol.
European Energy says it is currently building the world’s largest commercial e-Methanol facility to date, which will supply the shipping industry with green e-Methanol.
It has signed an agreement with shipping giant Maersk to supply 300,000 tons of green e-Methanol annually from 2025, some of which will be supplied by the biggest solar farm in Scandinavia.
European Energy says it has 25GW of wind, solar and Power-to-X projects secured and under active development and a portfolio of over 240 utility scale renewable energy projects spanning 3 continents.
It recorded a pre tax profit of €67.8 million for the first nine months of 2022, and has 1.4GW of new green energy projects under construction across nine countries.
European Energy will do the development work at Pacific Solar Hydrogen as well as managing the grid process for the portfolio of renewable energy projects. Austrom secured the rights to four renewable sites covering 6,000 hectares in proximity to the Gladstone export hub.
The deal was signed in the offices of Austrade and Trade and Investment, Queensland.
“European Energy is a welcome new entrant into Queensland’s hydrogen future. We wish the companies well as they work towards developing the Pacific Solar Hydrogen Project” said acting CEO Trade and Investment Queensland, Richard Watson.
