The Queensland state government is committing $28.9 million towards a renewable hydrogen demonstration plant and refuelling facilities on the Western Downs, in a move the government expects will help to fuel heavy transport in the region.
The Kogan Renewable Hydrogen Demonstration Plant will be built near Chinchilla by as part of a hydrogen refuelling network in the south west of the state being built by the state-owned CS Energy.
The Kogan plant will be located next to the Kogan Creek coal-fired power station, but will only source power from a neighbouring solar plant, along with battery storage, and will produce 50,000 kilograms a year of renewable hydrogen when it comes into operating next year.
“The demonstration plant’s hydrogen electrolyser will only be powered by behind-the-meter solar energy, making it one of the few truly renewable hydrogen projects in Australia,” said Mick de Brenni, Queensland’s minister for energy.
De Brenni said there is strong interest from potential customers in the domestic heavy transport and haulage sector.
“Queensland has a unique competitive advantage in the production of renewable hydrogen, with our proximity to Asia, established infrastructure, manufacturing capabilities and renewable energy generation.
“This project highlights the significant value of Queensland’s publicly owned power stations in the diversification of our state’s future energy portfolio.
The demonstration hydrogen production facility will also include a hydrogen electrolyser, hydrogen fuel cell, hydrogen storage, and out loading facilities.
“This demonstration project will provide CS Energy with valuable expertise and learnings so that we can establish a footprint in the renewable hydrogen sector and prepare for upscaling to commercial scale,” said CS Energy CEO Andrew Bills.
“As Australia’s energy sector transforms, it’s really important that CS Energy diversifies our revenue streams so that we create a sustainable future for the business.”
The construction contract has been awarded to IHI Engineering Australia (a subsidiary of IHI Corporation Japan) and is expected to get underway in September 2022. CS Energy will operate and maintain the plant upon completion, and will form part of CS Energy’s energy hub at Kogan Creek.
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