The Queensland government will partner with Japanese engineering firm IHI Corporation to complete a feasibility study into a green hydrogen production facility that could be co-located with the government owned Kogan Creek power station.
The Queensland government announced the partnership on Tuesday, which will see the government owned CS Energy collaborate with IHI Corporation to complete a study into establishing a green hydrogen facility at Kogan Creek, including the installation of an electrolyser along with a solar farm, battery and a hydrogen fuel cell.
CS Energy CEO Andrew Bills said the study would focus on the development of a hydrogen production facility that would draw electricity from an onsite and behind-the-meter solar farm, ensuring the project produced zero emissions hydrogen.
“CS Energy is pursuing this project to ensure we have the technical capability to enter the hydrogen market once it becomes more commercially viable,” Bills said. “The project will prove up the virtual power plant, production of green hydrogen and use of a battery to facilitate renewables.”
“The plant may also be able to provide other services like Frequency Control Ancillary Services, which are important for grid stability, and which will be scoped as part of the joint feasibility study.”
Queensland’s new minister for renewables and hydrogen, Mick de Brenni, said that the state government would continue to build linkages with Asian energy markets that are driving demand for new green hydrogen projects.
Another Queensland government owned energy company, Stanwell Corporation, announced a similar partnership with Japanese firm Iwatani to develop plans for a green hydrogen export terminal in Gladstone.
That partnership will investigate the potential export of hydrogen from Queensland and looks to tap into a growing Japanese market for hydrogen, underpinned by strong investment in hydrogen fuelled transport and energy storage.
“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,” de Brenni said.
“Our key strategic advantage in Queensland is our State-owned energy generators and ports.”
The Queensland government said the project would be part of a wider effort to diversify the income of CS Energy, with the company deriving most of its current revenues from the operation of three coal-fired generators.
CS Energy, along with Stanwell Corporation, recently became the subject of a consumer class action that alleges the companies undertook unlawful gaming of the electricity market, using their market dominance in Queensland to artificially push electricity prices higher.
Queensland’s acting premier, Steven Miles, said that the state government would continue to look for opportunities to support the establishment of a hydrogen industry in the state, and had committed to deliver up to $25 million in funding.
“Renewable hydrogen offers the opportunity to create a new high-tech industry delivering enhanced environmental outcomes and highly skilled jobs,” Miles said.
“Positioning Queensland to benefit from the hydrogen industry is a priority for the Government. That’s why I called a meeting of Ministers today to discuss how we can leverage this new industry.”
“Our commitment to develop and expand this industry is part of Queensland’s plan for economic recovery, creating jobs in new industries,” Miles added.