Hydrogen investment and funding
Queensland's abundant renewable energy resources, as well as our technical and research capabilities, positions us well to scale up a renewable hydrogen economy using existing infrastructure at key ports.
For more information on investing in Queensland visit Trade and Investment Queensland to download the Queensland Hydrogen Prospectus.
Queensland Government investment
The Queensland Government has made strategic investments to support the development of the hydrogen sector including:
- $15 million to plan for hydrogen hubs in key locations
- $5 million to introduce Queenslanders to the opportunities of our renewable hydrogen future
- $15 million to support development of the Stanwell-led Consortium CQH2 hydrogen export facility in Gladstone
- $50 million in state-of-the-art infrastructure to support training in renewables and hydrogen
- $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.
We also committed to a trial of 5 hydrogen powered Fuel Cell Electric Vehicles (FCEV) in the Queensland Government fleet.
International companies are investing in Queensland hydrogen projects in partnership with our publicly owned ports and energy generators:
- Japanese energy company Iwatani Corporation has 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 has signed an Memorandum of Understanding (MoU) 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.
The Queensland Government is supporting a range of other significant hydrogen projects in Queensland, including:
- Fortescue Future Industries (FFI) and Incitec Pivot Ltd have proposed to build the Gibson Island Green Ammonia Project that will produce up to 70,000 tonnes of renewable hydrogen to create 400,000 tonnes of green ammonia per annum.
- FFI has also commenced construction of the world’s largest electrolyser facility in Gladstone. Stage one will be a $114 million electrolyser facility, with the first electrolysers expected to be manufactured at the facility in early 2023. Several growth stages are already planned into its factory footprint which includes green manufacturing technology such as cables, batteries, wind turbines and solar panels.
- Hydrogen Utility (H2U) is working with mining and infrastructure solutions provider Orica and Korean power generator East – West Power Corporation (EWP) on the H2-Hub in Gladstone . This project has been declared a ‘coordinated project’ by the Coordinator-General and has potential to create over 550 jobs during construction, over 140 ongoing operational jobs and approximately 1,900 indirect jobs, and attract $4.7 billion investment during its phased construction.
- Australia’s largest rail freight operator Aurizon and global mining company Anglo American are undertaking a study into using hydrogen-powered trains for bulk freight on Aurizon’s Moura and Mount Isa Rail corridors, which means potential future opportunities for hydrogen in the state in both manufacturing and deployment of technology.
- Australian energy technology company LAVO is establishing Australia’s first hydrogen fuel cell manufacturing facility in Greater Springfield, which will provide additional hydrogen applications to smaller customer segments.
Queensland Hydrogen Industry Development Fund
Since the Hydrogen Industry Development Fund (HIDF) was first announced in 2019, a total of $35 million has been committed by the Queensland Government for hydrogen industry development activities. Projects funded from Round One of the HIDF include:
- Australian Gas Networks Limited – up to $1.78 million to build a renewable hydrogen production facility and undertake a gas blending trial of up to 10% hydrogen into the Gladstone City gas distribution network.
- Ark Energy H2 Pty Ltd – up to $5 million for integration of renewable hydrogen into potential applications including remote area power, transport and heavy industry.
- Jilrift Pty Ltd – up to $0.94 million to build a renewable hydrogen plant and demonstrate use of low-pressure hydride remote power systems at its eco-camps within the Spicers Resorts Scenic Rim trail.
HIDF Round Two funding announcements include:
- SeaLink Marine and Tourism - Gladstone will be positioned to have one of Australia’s first renewable hydrogen-powered passenger ferries following the announcement of $5 million support from the Queensland Government through the HIDF.
- Emerald Coaches Pty Ltd - Up to $2.7 million in funding support from the HIDF for Emerald Coaches to integrate two hydrogen fuel cell electric buses into its fleet of 120 diesel buses by mid-2023, to transport mine workers and students in the Bowen Basin.
- Goondiwindi Regional Council - Up to $2 million HIDF funding support to integrate hydrogen production with wastewater treatment.
- Transdev Queensland Pty Ltd – Up to $1.5 million HIDF funding to trial hydrogen fuel cell buses within the existing Translink public transport network at Redland Bay.
- Aurizon Operations Limited – Up to $5 million HIDF finding to trial four hydrogen fuel cell electric trucks in its fleet with installation of a high capacity refueller at the Stuart Freight Terminal for heavy vehicles.
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 $4.5 billion hydrogen and renewable energy jobs fund.
The Queensland Renewable Energy and Hydrogen Jobs Fund allows energy Government owned corporations to increase ownership of commercial renewable energy and hydrogen projects, as well as supporting infrastructure, including in partnership with the private sector.
Learn more about the Queensland Renewable Energy and Hydrogen Jobs Fund projects announced to date.
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 in partnership with industry and support from the Queensland Government established 4 Hydrogen Technology Clusters in Queensland under the Hydrogen Technology Cluster Australia Network (H2TCA). The four Queensland clusters are:
- CQH2 – Central Queensland Hydrogen Technology Cluster
- NQH2 - North Queensland Hydrogen Consortium
- SQHII - Southern Queensland Hydrogen Industry Institute
- H2Q (Queensland’s state-wide hydrogen industry group)
- Last updated:
- 20 December 2022