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Hydrogen investment and funding

Queensland is well positioned to scale up a hydrogen economy utilising existing infrastructure at key ports. The state’s abundant renewable energy sources and technical and research capabilities also make it an ideal location for the development of a renewable hydrogen sector.

For more information on investing in Queensland visit Trade and Investment Queensland.

Queensland Government investment

The Queensland Government has made strategic investments to support the development of the hydrogen sector including:

  • $600,000 in financial support over 4 years for the Future Energy Exports Cooperative Research Centre
  • $250,000 towards the QUT-led H2XPort renewable pilot plant hosted at the Queensland Government’s Redlands Research Facility
  • $100,000 to support the National Energy Resources Australia (NERA) national hydrogen technology clusters program. The NERA regional clusters program has now been extended to include 3 clusters in Queensland (SEQ, Gladstone and Toowoomba).

We also committed to a trial of 5 hydrogen powered Fuel Cell Electric Vehicles (FCEV) in the Queensland Government fleet.

International investment

International companies are investing in Queensland hydrogen projects in partnership with our publicly owned ports and energy generators:

  • Japanese energy company Iwatani Corporation partnered with Stanwell Corporation to develop a large-scale renewable hydrogen facility in Aldoga, west of Gladstone. Japanese companies Kawasaki Heavy Industries, Kansai Electric Power Company and Marubeni, and Australian energy infrastructure business APA Group have also joined the consortium.
  • IHI Corporation Japan and CS Energy partnered to assess the feasibility of establishing a renewable hydrogen demonstration plant next to CS Energy’s Kogan Creek Power Station on Queensland’s Western Downs.
  • Japan’s largest oil company ENEOS Corporation committed to a detailed study on the establishment of a commercial scale hydrogen supply chain between Japan and Queensland.
  • Japanese multinational Sumitomo Corporation partnered with Gladstone Ports Corporation, Gladstone Regional Council, CQUniversity Australia, Australian Gas Infrastructure Group and CleanCo to develop a renewable hydrogen ecosystem in Gladstone.
  • Sumitomo Corporation also signed a letter of intent with Rio Tinto to study the construction of Sumitomo’s hydrogen pilot plant at Rio Tinto’s Yarwun alumina refinery in Gladstone and explore the use of hydrogen at the site.
  • Japanese trading company ITOCHU Corporation signed a Memorandum of Understanding (MoU) with North Queensland Bulk Ports Corporation, Dalrymple Bay Infrastructure and Brookfield to develop plans to build a renewable hydrogen production, storage and export facility within the Hay Point port precinct.
  • Ark Energy (subsidiary of Korea Zinc) signed a MoU with the Port of Townsville to investigate the development of a renewable hydrogen facility focused on the transport industry at Sun Metals’ zinc refinery in Townsville, along with hydrogen export facilities at the Port of Townsville.

Renewable energy zones

A renewable energy zone brings together a coordinated mix of generation, network upgrades, demand, and potentially storage, to deliver renewable electricity investments more efficiently than developing projects individually.

Our establishment and investment into renewable energy zones will further enable opportunities to develop hydrogen hubs across Queensland.

The renewable zones investment will inject economic activity into our regional communities, supporting Queensland’s Economic Recovery Plan.

It will position Queensland as a renewable energy investment destination, support decarbonisation and efficiency goals, and create long term employment.

Funding

Queensland Hydrogen Industry Development Fund

A $15 million Hydrogen Industry Development Fund was announced in 2019 as part of the implementation of the Queensland Hydrogen Industry Strategy. In Round One, funding was provided to 4 renewable hydrogen projects with a total estimated investment value of $37.2m.

In late 2020, the Queensland Government committed a further $10 million for hydrogen industry development activities.

Hydrogen and Renewable Energy Jobs Fund

Queensland is creating jobs for a sustainable and affordable energy future to benefit Queensland communities, workers and our economy through the $2 billion hydrogen and renewable energy jobs fund.

The Queensland Jobs Fund includes a $350 million Industry Partnership Program and existing programs that support job-creating industries like renewable energy, hydrogen, resource recovery, business, manufacturing and catalytic infrastructure.

Cheaper, cleaner energy powering more jobs.

Commonwealth funding

In 2019, the Australian Renewable Energy Agency (ARENA) announced the Renewable Hydrogen Development Funding Round of up to $70 million to help fast track the development of renewable hydrogen in Australia. This initiative is now closed and followed the release of the National Hydrogen Strategy.

The Advancing Hydrogen Fund, drawing on CEFC finance, has up to $300 million available to support the Australian hydrogen industry.

NERA is an independent not-for-profit company funded through Federal Government grants and collaborative programs by state/territory governments, industry and the science and research community. NERA is accelerating the hydrogen supply chain through the Regional Hydrogen Technology Cluster Seed Funding Program.

Last updated: 
12 January 2022