Federal Government invests $69 million into Central Queensland Hydrogen Hub

The Australian Government has taken another significant step in its mission to establish Australia as a renewable energy superpower by announcing a commitment of $69.2 million to the development of the Central Queensland Hydrogen Hub, to be located in Gladstone.

Gladstone Hydrogen
Artist impression of the CQ-H2 hydrogen production facilities. Image: Stanwell

The Gladstone announcement follows recent commitments to hydrogen hubs in other regions, including the Hunter Valley and South Australia's Spencer Gulf. The Regional Hydrogen Hubs program, which this new initiative sits under, aims to create a network of hydrogen production and distribution centers across the country.

The Central Queensland Hydrogen Hub is expected to have a substantial impact on the region's economy, with projections it could generate over 8,900 jobs, encompassing a wide range of roles in construction, trades, and engineering.

The investment will also fund the development of essential infrastructure for hydrogen production, including a hydrogen electrolyser, pipeline, and underground hydrogen storage. These assets are not only intended to support domestic hydrogen needs but also enable hydrogen export opportunities.

Gladstone, the chosen location for the hub, boasts a range of advantages, including existing energy export capabilities, extensive port and rail infrastructure, advanced manufacturing facilities, and a highly skilled workforce.

CQUniversity will partner with the government and industry in supporting the CQ Hydrogen Hub. The university's role will extend to establishing a Hydrogen Centre for Excellence, which will focus on enhancing education and training in the field of clean energy.

The Stanwell Corporation will lead the consortium responsible for the Central Queensland Hydrogen Hub's development. Industry partners will match the Commonwealth's contribution, resulting in a total investment of at least $138 million.

Construction is set to commence early next year, with the project expected to become operational by mid-2027. By 2031, the new Hub is anticipated to produce up to 292,000 tonnes of hydrogen annually. This volume is equivalent to fueling more than double Australia's heavy vehicle fleet, signifying a major contribution to decarbonizing the transportation sector.

Australia's hydrogen industry is anticipated to generate an additional $50 billion in GDP by 2050, creating tens of thousands of jobs in regional areas and furthering the nation's journey towards becoming a renewable energy superpower.

“This is a critical time for Queensland, as new industries emerge at rates not seen since the industrial revolution, driving growth and prosperity in the regions," said Queensland Minister for Energy, Renewables and Hydrogen Mick de Brenni.

“Thanks to Queensland’s combination of abundant natural resources and clear policy framework supporting green hydrogen, it’s estimated the industry will be worth $33 billion by 2040, boosting our economy, supporting jobs, and helping decarbonise the world."

Read more about the plans for the Central Queensland Hydrogen Project on the CSIRO webpage here.

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