Multi-billion dollar green hydrogen project evaporates
The Central Queensland Hydrogen Project in Gladstone will not go ahead, with Queensland's state-owned Stanwell Corporation confirming its end in the project.
"Stanwell has discontinued its involvement in the Central Queensland Hydrogen Project (CQ-H2) project and other hydrogen development activities," the corporation 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."
Queensland's government announced earlier in 2025 it would not extend any further loans or grants to the project.
Treasurer David Janetzki said a fundamental principle of his budget handed down last week was "respect for taxpayer money".
"And I made the decision in February that that project in particular, was speculative in nature, and I didn't want to see the precious taxpayer dollar tipped into it," he told reporters on Monday.
"I think ... other private sector proponents have looked at it and now the consortium has made a decision to step aside from that project."
Stanwell had requested $1 billion from the government in February to continue the project, which was ultimately rejected.
Federal Energy Minister Chris Bowen said the news comes as no surprise but expressed disappointment.
"I think it's a sad day for Gladstone," he told reporters on Monday.
"Hundreds of jobs that would have been created now won't be created because of that decision."
The hydrogen plant and pipeline was expected to cost $12.5 billion in 2019 before blowing out to nearly $15 billion in 2022.
Initial project estimates indicated it could deliver almost 9000 jobs and more than $17.2 billion in hydrogen exports over its 30-year life through gaseous renewable hydrogen converted to renewable ammonia and liquefied hydrogen for export.
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