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West Australian
04-07-2025
- Business
- West Australian
Green hydrogen powers back up with major funding
A major green hydrogen project has secured federal backing days after one of the biggest proposals to produce the clean fuel fell over. The Commonwealth financial support for the Hunter Valley facility will allow it to make the switch from hydrogen made with gas, a fossil fuel, to renewable energy. Funding of $432 million for the Orica facility was allocated under the federal government's Hydrogen Headstart program, which provides credits for the manufacture of the clean fuel. The $2 billion grant program, delivered by the Australian Renewable Energy Agency, aims to build scale across green hydrogen production and so drive down costs over time. Australia wants to become a global leader in green hydrogen to power heavy industry and long-haul trucks, and to produce green metals such as iron - all key to meeting global decarbonisation targets and tackling climate change. But the fledgling sector has struggled to find its feet. One of the biggest proposals in the nation, Gladstone's $14 billion Central Queensland Hydrogen Project (CQ-H2), was officially scrapped this week after the state government withdrew its support. Federal Energy Minister Chris Bowen acknowledged the headwinds faced by the renewable hydrogen industry but said his government was rising to the challenge. "It's in the hard basket, not the too hard basket," he told reporters on Friday. The failed Gladstone project was a disappointment, Mr Bowen said, pointing a finger at the Queensland government rather than private sector investors. Queensland Treasurer David Janetzki has described the Gladstone project as "speculative in nature" and said he "didn't want to see the precious taxpayer dollar tipped into it". The federal incentives for the Hunter Valley project will go towards a 50 MW electrolyser powered by renewable energy on the Kooragang Island site, capable of producing about 4700 tonnes of green hydrogen each year to support regional jobs in low-carbon industries. Hydrogen is used to make ammonia, important in fertiliser production, so the shift to a clean fuel will allow Orica to cut emissions from its ammonia facilities. It will also open the region to opportunities to export clean hydrogen and ammonia. Clean Energy Council general manager of advocacy and investment Anna Freeman applauded the government's commitment to getting "complex and challenging" renewable hydrogen projects off the ground. "We urgently need to drive down the cost of this renewable fuel to support Australia's decarbonisation plans," Ms Freeman said.
Perth Now
04-07-2025
- Business
- Perth Now
Green hydrogen powers back up with major funding
A major green hydrogen project has secured federal backing days after one of the biggest proposals to produce the clean fuel fell over. The Commonwealth financial support for the Hunter Valley facility will allow it to make the switch from hydrogen made with gas, a fossil fuel, to renewable energy. Funding of $432 million for the Orica facility was allocated under the federal government's Hydrogen Headstart program, which provides credits for the manufacture of the clean fuel. The $2 billion grant program, delivered by the Australian Renewable Energy Agency, aims to build scale across green hydrogen production and so drive down costs over time. Australia wants to become a global leader in green hydrogen to power heavy industry and long-haul trucks, and to produce green metals such as iron - all key to meeting global decarbonisation targets and tackling climate change. But the fledgling sector has struggled to find its feet. One of the biggest proposals in the nation, Gladstone's $14 billion Central Queensland Hydrogen Project (CQ-H2), was officially scrapped this week after the state government withdrew its support. Federal Energy Minister Chris Bowen acknowledged the headwinds faced by the renewable hydrogen industry but said his government was rising to the challenge. "It's in the hard basket, not the too hard basket," he told reporters on Friday. The failed Gladstone project was a disappointment, Mr Bowen said, pointing a finger at the Queensland government rather than private sector investors. Queensland Treasurer David Janetzki has described the Gladstone project as "speculative in nature" and said he "didn't want to see the precious taxpayer dollar tipped into it". The federal incentives for the Hunter Valley project will go towards a 50 MW electrolyser powered by renewable energy on the Kooragang Island site, capable of producing about 4700 tonnes of green hydrogen each year to support regional jobs in low-carbon industries. Hydrogen is used to make ammonia, important in fertiliser production, so the shift to a clean fuel will allow Orica to cut emissions from its ammonia facilities. It will also open the region to opportunities to export clean hydrogen and ammonia. Clean Energy Council general manager of advocacy and investment Anna Freeman applauded the government's commitment to getting "complex and challenging" renewable hydrogen projects off the ground. "We urgently need to drive down the cost of this renewable fuel to support Australia's decarbonisation plans," Ms Freeman said.
Nikkei Asia
02-07-2025
- Business
- Nikkei Asia
Australia's green hydrogen ambitions in doubt as CQ-H2 plant stalls
Energy Project unable to move forward after conservative state government ends support The CQ-H2 project aimed to produce 300,000 metric tons of hydrogen annually using renewable energy from 2031. (Stanwell) RURIKA IMAHASHI SYDNEY -- Australia's largest project to produce green hydrogen with renewable energy is unable to move forward, hampered by a new conservative state government that is unwilling to shoulder the high costs. Multiple people familiar with the CQ-H2 project in Queensland that had been led by state-owned power company Stanwell confirmed it has stalled. Stanwell issued a statement saying it had "discontinued its involvement in the [CQ-H2] project and other hydrogen development activities."
Sky News AU
01-07-2025
- Business
- Sky News AU
Annastacia Palaszczuk concedes green hydrogen production 'too hard' after Central Queensland Hydrogen Project collapses
The key Labor Premier behind Chris Bowen's green hydrogen push has conceded developing the renewable fuel "doesn't stack up" after the nation's biggest green hydrogen project collapsed. Annastacia Palaszczuk, whose Queensland government backed the now-failed Central Queensland Hydrogen Project, now doubts the vision of the government she led after a litany of projects failed. 'Hydrogen is proving to be in the 'too hard' basket,' Ms Palaszczuk told Sky News on Tuesday. 'The price is not right. People are looking around (at) solar, batteries, (there are) conversations around making more gas supply available domestically. 'Hydrogen is just too hard at the moment and until those prices come down, I don't think we'll see those projects taking off the ground.' The nation's largest hydrogen project, CQ-H2, was axed on Monday after it failed to attract sufficient investment. Ms Palaszczuk conceded the announcement was 'a little bit disappointing' given her loud support for green hydrogen during her tenure as Premier. 'It was high in the national agenda, but it just doesn't stack up,' she said. 'I can understand why this has happened at this particular point in time.' She pushed back against the suggestion Queensland Labor was given inaccurate forecasts about improvements in green hydrogen technology, remaining adamant there was a future in the renewable fuel. 'You've got to be in it to win it,' Ms Palaszczuk said. 'Whoever's going to crack green hydrogen is going to make a lot of money so you've gotta be in it to win. 'Good partnerships were happening with the state enterprises, but also too with other countries, but it was just found to be too difficult in these circumstances. 'That's not to say it's not going to happen down the track, but the seed funding was necessary at the time.' Several green hydrogen projects have fallen around the country in recent months, raising concerns about the feasibility of the energy source. Despite this, Energy Minister Chris Bowen recently flagged efforts to provide $8 billion over 10 years into the hydrogen industry. Addressing the collapse on Monday, Mr Bowen conceded there would be challenges facing green hydrogen projects and said the Crisafulli government's decision to withdraw financial support meant the collapse came as "no surprise". "Does it face headwinds? Of course it does. Of course it does. It faces investment headwinds," Mr Bowen told reporters. "And as I've said, including in a speech just a couple of weeks ago, these things don't follow a linear line; you have progress, you have setbacks." Meanwhile, Shadow Energy Minister Dan Tehan has blamed the Albanese government for driving up power prices due to an 'ideologically driven renewables-only agenda'. 'Minister Bowen's ideological renewables only approach is disrupting the energy system and leading to higher electricity prices,' Mr Tehan said on Tuesday. 'There is no transparency about the true costs to consumers of Labor's renewables only approach and underwriting renewable energy projects using taxpayer money.' According to the government's own Australian Energy Market Commission, 'new generating plants do not earn enough money… to compensate for the investment'.
The Advertiser
30-06-2025
- Business
- The Advertiser
Multi-billion dollar green hydrogen project evaporates
A project once touted to produce 800 tonnes of green hydrogen a day by the end of the decade is dead following the collapse of an international consortium. 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." 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. A project once touted to produce 800 tonnes of green hydrogen a day by the end of the decade is dead following the collapse of an international consortium. 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." 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. A project once touted to produce 800 tonnes of green hydrogen a day by the end of the decade is dead following the collapse of an international consortium. 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." 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. A project once touted to produce 800 tonnes of green hydrogen a day by the end of the decade is dead following the collapse of an international consortium. 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." 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.
