Major blow for Albanese government's renewable goals after massive $12.5b Central Queensland Hydrogen Project collapses
Work began on the $12.5b Central Queensland Hydrogen Project (CQ-H2) in 2018 by a consortium led by state backed-Stanwell Corporation alongside Japanese and Singaporean companies.
It was originally slated to create up to 200 tonnes of liquefied hydrogen per day by 2028 and about 800 tonnes by 2031.
However, the project was rocked in February when the Crisafulli government revealed it would not support the energy project which had the support of the previous state Labor governments.
Stanwell had attempted to find a new funding partner after the Queensland government rejected a bid for $1.6b of funding, a source told The Australian.
These efforts ultimately failed, leading the company to exit the project.
'Stanwell has discontinued its involvement in the CQ-H2 project and other hydrogen development activities,' Stanwell said in a statement.
'The CQ-H2 project has been a valuable international collaboration that has provided important technical and commercial knowledge to support the future large-scale commercialisation of renewable hydrogen.'
Alongside Stanwell, Japanese utility Kansai Electric Power Company exited the consortium in November.
The project's website says CQ-H2 will bring in $9b in foreign direct investment, $14.5b in earnings from exports, contribute an $8.9b bump to Central Queensland's economy and create more than 1000 direct and indirect jobs.
CQ-H2's collapse comes as Labor seeks to boost green hydrogen production for local manufacturing with its Future Made in Australia plan.
A Hydrogen Production Tax Incentive is included in Labor's net-zero plans and more than $6.5 billion will go towards the scheme.
It is set to provide $2 per kilogram of renewable hydrogen produced between 2027-28 and 2039-40.
CQ-H2's collapse comes as the government has boasted of 'more than 100 projects announced since 2019' in its latest National Hydrogen Strategy report, but many of these have since been scrapped.
At least 61 previously planned projects have been listed as 'archived' according to the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
South Australian Premier Peter Malinauskas in February dumped plans for an almost $600m hydrogen plant.
Meanwhile, The Australian in March reported that 99 per cent of the forecasted capacity from green hydrogen projects has not progressed beyond concept or approval stage.
The Albanese government plans for about 94 per cent renewable energy by 2050 and the remainder from gas and storage.
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