Latest news with #CQH2
Daily Mail
08-07-2025
- Business
- Daily Mail
Australia's biggest green hydrogen project just imploded - so Labor is betting $430million of YOUR money to roll the dice on another one
A major green hydrogen project has secured federal backing just days after the biggest proposal in the country to produce the clean fuel spectacularly collapsed. 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 $432million 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 $2billion grant program, delivered by the Australian Renewable Energy Agency, aims to build scale across green hydrogen production and so drive down costs over time. The Albanese government wants Australia to become a global leader in green hydrogen to power heavy industry and long-haul trucks, and to produce green metals such as iron - key to meeting global emissions targets and tackling climate change. But the fledgling sector has struggled to find its feet. The biggest proposal in the nation, Gladstone's $14billion Central Queensland Hydrogen Project (CQ-H2), was officially scrapped last week after private companies backed away and the state government then 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. Federal Energy Minister Chris Bowen announced an Orica facility near Newcastle will get $430million in taxpayer funding and that it will be difficult for the government to pull off '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. The CQ-H2 project was the largest hydrogen development by electrolyser capacity in Australia that was in the front-end engineering phase. It was partially funded with $20million from the federal government and another $15million from the Queensland state government. The Queensland government-owned Stanwell Corporation withdrew from the project after the Japanese companies Kansai Electric Power and Iwatani pulled out. Queensland Treasurer David Janetzki 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 50MW 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.
ABC News
30-06-2025
- Business
- ABC News
Developers dump Gladstone's Central Queensland Hydrogen Project CQH2
Developers have dumped a $14 billion green hydrogen export project, despite almost $90 million in federal government funding commitments. The Central Queensland Hydrogen Project (CQH2) had been touted as one of Australia's biggest green hydrogen projects and was hailed as a pathway to helping achieve net zero emissions targets. State-government owned energy company Stanwell said this morning it had withdrawn its support for CQH2, as well as other hydrogen development activities. "The 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," a Stanwell spokesperson said. The CQH2 project planned to begin exporting green hydrogen to Japan and Singapore by 2029. The cost was originally estimated at $12.5 billion, but a 2022 feasibility study found it had blown out to $14.75 billion. The ABC understands the consortium behind the project no longer exists. Supporters argued it would grow central Queensland's economy by $8.9 billion and help create thousands of new jobs. Green hydrogen is a fuel source extracted from water using a renewable energy source such as solar. The Queensland government earlier this year withdrew their funding commitment with Treasurer David Janetzki arguing the financial demands were too high. He said at the time it would have required more than $1 billion in state government funding. Federal Energy Minister Chris Bowen said that decision made the project's viability "very difficult". "More broadly, while facing headwinds, green hydrogen will continue to play an important role both in decarbonising global industry and creating Australian jobs." Mr Bowen said further announcements for the Hydrogen Headstart program, which supports the development of large-scale renewable hydrogen projects, would come "quite soon". The federal government had already spent $20 million on an engineering and design study for the project, while more than $69 million had also been committed through its regional hydrogen hubs program. Queensland Conservation Council's Gladstone spokeswoman Emma Smith said she was disappointed the project would not proceed. "CQH2 had been doing a lot of groundwork to ensure that their operations in Gladstone could utilise the skills and industry already in our city, and be a welcome addition to our export potential," she said. Ms Smith criticised the state government for backing out of the project, and said more needed to be done to support new clean industries. "The continued attacks on renewable energy and clean industry are jeopardising regional jobs and derailing new industries," she said. It is another blow for the developing industry in Gladstone. In May, billionaire Andrew Forrest's company Fortescue abandoned both stages of its hydrogen projects in the city, including a hydrogen electrolyser facility — for splitting hydrogen and oxygen — which was operational at the time. The former Labor state government had also spent almost $1 billion on the Fitzroy to Gladstone Pipeline, which is due to be completed next year. The pipeline was planned to shore up the region's water security, in part for a future hydrogen industry. Gladstone Mayor Matt Burnett said he was still confident in green hydrogen and its future in the city. "I've seen a lot of projects come through my door," he said. "We will continue to welcome all these proponents that are looking to invest in Gladstone."
