The Queensland government will provide $28.9 million towards the construction of a renewable hydrogen demonstration plant and refuelling facilities in the Western Downs to create more local jobs and more industry.
CS Energy appointed IHI Engineering Australia to construct the Kogan Renewable Hydrogen Demonstration Plant near Chinchilla, with work to start on site in six months.
The Kogan Renewable Hydrogen Demonstration Project will provide 50,000kg of renewable hydrogen each year when operational in 2023, minister for energy, renewables and hydrogen Mick de Brenni said.
“Queensland has a unique competitive advantage in renewable hydrogen, with our proximity to Asia, established infrastructure, manufacturing capabilities and renewable energy generation,” de Brenni said.
“It is one of the most advanced renewable hydrogen projects in Queensland, with CS Energy’s collaboration with Japan’s Sojitz Corporation to export hydrogen to Palau, and strong interest from potential off-takers in the domestic heavy transport and haulage sector.”
The demonstration project includes the co-location of a solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage and out loading facility.
It will be built next to CS Energy’s Kogan Creek Power Station but will only be powered by renewable energy from the solar farm.
CS Energy has entered engineering, procurement, and construction contract with IHI Engineering Australia for the Kogan Renewable Hydrogen Demonstration Plant.
“This demonstration plant’s hydrogen electrolyser will only be powered by the behind-the-meter solar energy, making it one of the few truly renewable hydrogen projects in Australia,” de Brenni said.
“It’s great to hear that IHI Engineering Australia has already been in discussions with regional companies identified through CS Energy’s skills mapping partnership Toowoomba and Surat Basin Enterprise.”
This demonstration project will provide CS Energy with valuable expertise and learnings to establish a footprint in the renewable hydrogen sector and prepare for upscaling to commercial scale, CS Energy CEO Andrew Bills said.
“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,” Bills said.
IHI welcomes the opportunity to be involved in the initial stages of the global green hydrogen and ammonia value chain and is committed to this new industry in Australia, IHI Engineering Australia MD Motoya Nakamura said.
“IHI has been a significant contributor to the development of the energy sector in Australia over the last 50 years and looks forward to expanding our low carbon project portfolio over the 50 years to come,” Nakamura said.
Construction is expected to begin in September 2022 once all relevant development approvals have been finalised.
The demonstration plant will form part of CS Energy’s energy hub at Kogan Creek and will operate and maintain the plant once it is completed.