CS Energy and natural gas producer Senex have agreed to form a joint venture (JV) to develop the Kogan Renewable Hydrogen Demonstration Plant near Chinchilla, in Queensland.
The deal will produce green hydrogen to fuel the latest stop on the east coast Hydrogen Superhighway, creating even more skilled jobs in regional Queensland.
The Queensland Government signed a tri-state collaboration (VIC, NSW and QLD) on the renewable hydrogen refuelling network for heavy transport and logistics along Australia’s eastern seaboard in March.
The Hume Hydrogen Highway (HHH) program will support the development of hydrogen refuelling stations, starting with the Hume Highway, the Pacific Highway and the Newell Highway.
The Kogan Renewable Hydrogen Demonstration Plant is a green hydrogen production facility that will be built next to CS Energy’s Kogan Creek Power Station. The project will include the co-location of a solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage and out loading facility.
The aim of the project is to produce renewable hydrogen and provide energy and other grid services while gaining expertise from an operational hydrogen project from production, storage, transport and handling.
Under the joint venture agreement, CS Energy will operate and hold 75 per cent equity in the plant, while Senex Energy will hold 25 per cent equity in the plant. The plant is expected to produce approximately 50,000 kilograms of hydrogen annually.
IHI Engineering Australia (a subsidiary of IHI Corporation Japan) has been appointed to construct the plant.
Minister for Energy, Renewables and Hydrogen Mick de Brenni said the Queensland Government is supporting CS Energy with $28.9 million for the demonstration plant and a refueller network.
“This green hydrogen will be used in the latest stop on our Hydrogen Superhighway established with New South Wales and Victoria and help develop Australia’s energy independence via the transport sector,” de Brenni said.
CS Energy CEO Andrew Bills said both companies recognised the enormous potential of renewable hydrogen to contribute to a low-carbon future in Australia.
“CS Energy is excited to welcome Senex Energy as our partner at this key point in the project as we move to the construction phase later this year,” Bills said.
Senex Energy Chief Executive Officer Ian Davies said the company’s participation in the project underlined its commitment to the supply of reliable, affordable and sustainable energy that is vital to the economy and jobs.
“To ensure Queensland’s and Australia’s energy security, and reach net zero targets, we need all forms of energy to work together. The natural gas sector is the ideal partner for development of a renewable hydrogen industry and that’s why we’re investing in this project,” Davies said.
Work is due to start on the site in September this year.
For more information on the project, click here.
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