Gas peaking plant edges ahead with target of 35% renewable hydrogen mix by 2026

Plans to build a “hydrogen ready” gas peaking plant in Queensland have firmed up this week with a deal locking in the supply of key equipment that is expected to allow the plant to power up in just a few years – fuelled by 35% renewable hydrogen.

State-owned utility CS Energy said on Thursday that it has inked a deal with GE Vernova to supply hydrogen ready peaking generation units for the Brigalow Peaking Power Plant, being built at the Kogan Creek clean energy hub in the Western Downs.

The 400MW peaking plant was unveiled over a year ago as part of the Labor Palaszczuk government’s Energy and Jobs Plan, winning funding as a “fast start” power generator that would start off using gas blended with hydrogen with the aim of transitioning to 100 per cent green hydrogen over time.

In a statement on Thursday, the government said the new power station would “underpin energy security” for the state, with the ability to operate in high demand periods to support solar and wind.

The government says the plant, which is slated to be up and running by 2026, will source its renewable hydrogen from CS Energy’s Kogan Renewable Hydrogen Demonstration Plant.

“Production of renewable hydrogen is expected to be scaled up through the development of a commercial scale hydrogen production facility as part of the Kogan Clean Energy Hub,” the statement says.

The Kogan Creek renewable hydrogen demonstration plant is also being developed by CS Energy, beside the existing Kogan Creek coal-fired power station, featuring a co-located solar farm, battery, a hydrogen electrolyser and hydrogen fuel cells.

According to the project website, the current plans include a 1MW hydrogen electrolyser, a 2MW solar farm, a 2MW/4MWh battery energy storage system and a 30kW hydrogen fuel cell. Annual hydrogen production is estimated at around 75,000 kg a year.

Just how quickly all of this will come together – and how quickly the gas peaking plant will be able to transition to 100 per cent renewable hydrogen – remains to be seen. But the pressure is on.

Queensland treasurer Cameron Dick said on Thursday that the state would need up to 3GW of additional “low-to-zero emission gas” for peak demand and backup security by 2035 – the same year Queensland has committed to meet the soon-to-be legislated target of 80 per cent renewables.

“The Brigalow Peaking Power Plant demonstrates the opportunity for real action on climate change, moving away from fossil-fuels to green hydrogen produced here in Queensland from our abundant sun, wind and water,” state energy minister Mick de Brenni said.

“We know that green hydrogen has the potential to deliver 10,000 jobs and boost the economy by $33 billion by 2040, and that is why we’re backing this venture, as part of our commitment to the greatest jobs, climate and export opportunity in a generation.”

CS Energy CEO Darren Busine says the open-cycle design of the Brigalow Peaking Power Plant will provide the ability for multiple start/stop cycles per day and to ramp up to full power output within five minutes.

“This project is an example of how we are creating clean energy hubs at our power stations to deliver the energy mix needed to reliably transition the grid to renewable energy while also providing opportunities for our workforce to reskill,” Busine said.