Japan-centered Iwatani Corporation, Marubeni Corporation, Kawasaki Heavy Industries and Kansai Electric Power have established a memorandum of understanding (MOU) to investigate large-scale green hydrogen production in Australia. APT Management Services Pty and Stanwell Corporation, two Australian energy infrastructure businesses, have agreed to collaborate on a feasibility study for Central Queensland Hydrogen Project (CQ- H2).
This project will use renewable energy to manufacture hydrogen on a huge scale, liquefy it in Gladstone, Queensland, Australia, and afterward ship liquefied hydrogen to Japan. Because hydrogen is widely predicted to be a vital energy resource for achieving a zero-carbon society, establishing a hydrogen supply chain that includes international transportation is deemed critical.
However, because existing hydrogen production technology utilizing fossil fuels generates CO2 throughout the production process, it is essential to build CO2-free hydrogen generation in conjunction with CO2 collection and storage technology and utilization of renewable power in order to reach a zero-carbon civilization. Since the worldwide battle for CO2-free hydrogen sources, which has heated up, securing a low-cost power delivery from renewable sources and export ports has become critical.
In light of this, the Queensland government has pushed for a shift away from fossil fuels and toward renewable energy and hydrogen. Furthermore, due to the area’s favorable weather conditions for over 300 days a year, Queensland has tremendous renewable energy potential.
Stanwell, a Queensland government-owned electric power corporation, plays a crucial part in attaining this energy transition aim. As a result, Iwatani and Stanwell undertook a concept assessment of green liquefied hydrogen production and export to Japan from the year 2019 to the year 2020.
Based on the study’s findings, the six Australian and Japanese companies decided to complete a feasibility study to determine the project’s commercial potential. The program seeks to generate and sell low-cost hydrogen in a reliable manner over the long term, with production targets of a minimum of 100 tonnes of hydrogen every day by 2026 and 800 tonnes per day by 2031.
Currently, Japan’s maximum liquefied hydrogen production capacity is 30 tonnes every day, implying that the goal production capacity of 800 tonnes every day by 2031 is around 26 times higher than the existing capacity.
The Aldoga facility (235 hectares), which is a hydrogen production facility acquired by Stanwell in Gladstone region, is going to be evaluated for the project, as well as hydrogen liquefaction as well as a loading base of roughly 100 hectares in Fisherman’s Landing will be obtained. Green hydrogen will also be supplied as part of the initiative, not only for sale to Japan but also to fulfill local demand.