The Queensland government has announced a demonstration green hydrogen plant will be built at CS Energy’s Kogan Creek Power Station, with a capacity of 50,000 kilograms annually and coming online in 2023.
The project was an opportunity for publicly-owned CS Energy to establish itself in hydrogen and boost the state’s renewable assets, said state energy minister Mick de Brenni.
“Better yet, CS Energy are looking to support the decarbonisation of the heavy transport and haulage market with their locally produced zero emission fuel and discussions are well advanced with multiple potential off-takers.
“Transport is Australia’s second largest emitter after the electricity sector so making renewable hydrogen available offers enormous potential for transport sector innovation in Queensland.”
The feasibility study by CS Energy and IHI Corporation Japan was announced in February. Co-located at the project will be a solar farm, battery, hydrogen electrolyser and a hydrogen fuel cell at the site near Chinchilla. Kogan Creek is currently powered by black coal.
CS Energy explained at the time that the project would ”ensure we have the technical capability to enter the hydrogen market once it becomes more commercially viable.”
Construction would begin next year and commissioning in early 2023, according to the Queensland government.
“This project offers multiple benefits for CS Energy because of hydrogen’s ability to be used as both a fuel and as a way to store energy,” CEO Andrew Bills said.
“In addition to selling hydrogen into the domestic market, CS Energy can use the plant’s battery to provide grid stability services in the Frequency Control Ancillary Services Market.
The news follows the weekend’s announcement that Fortescue Future Energy would begin a six-stage, $1 billion hydrogen project near Gladstone, Queensland. The first stage will be Australia’s first multi-gigawatt-scale electrolyser factory, with an initial capacity of 2 gigawatts per annum, with construction planned to begin February 2022.
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