Joint media release with Ken O’Dowd MP, Member for Flynn

The future of hydrogen production in Gladstone will get a boost from a new export project as the Morrison Government continues to back projects that will accelerate the development of an Australian hydrogen industry. 

The Government is providing up to $2.17 million through the Australian Renewable Energy Agency (ARENA) to support the $10.5 million project for Stanwell Corporation Limited’s study into a large-scale hydrogen electrolyser and liquefaction facility in Gladstone, Queensland.

The project will be delivered in partnership with Japan’s largest hydrogen supplier, Iwatani Corporation, with support from a broader industry consortium of Japanese and domestic partners including Kansai Electric Power Corporation, Marubeni Corporation and Kawasaki Heavy Industries and APA Group, as well as funding from the Japanese Ministry of Economy, Trade and Industry.

If feasible, the project would initially aim to produce up to 36,500 tonnes per annum of clean hydrogen for export to Japan from 2026. Stanwell then plans to scale up to 328,500 tonnes per annum in 2031 to meet forecast Japanese demand.

Importantly, the project will create new economic opportunities and jobs. More than 5,000 new jobs are expected to be created, and $4.2 billion in hydrogen exports.

The facility would also supply local businesses with clean energy, helping energy-intensive heavy industries across Queensland to lower their carbon footprints.

Minister for Energy and Emissions Reduction Angus Taylor said the project was another important step in establishing a hydrogen supply chain with Japan, where there is strong demand for our clean energy.

“We want Australia to be a hydrogen global powerhouse and projects like this are critical to growing demand for Australian hydrogen and industry development,” Minister Taylor said.

“This project demonstrates the importance of government, industry and international partners working together to accelerate the development of low emissions technologies.

“The Morrison Government is committed to developing export and domestic supply chains, establishing hydrogen hubs and backing projects that build domestic demand for hydrogen. Gladstone is an ideal location to help deliver this.”

The Member for Flynn Mr Ken O’Dowd said he would welcome any development that would generate jobs in Gladstone.

“Securing the future of Gladstone industries, such as hydrogen, is essential for the community’s long-term economic prosperity,” Mr O’Dowd said.

“Our manufacturing industries are so important to the Australian economy and any reduction in emissions will benefit our communities.”

Under the Government’s Technology Investment Roadmap we have set the goal of producing hydrogen at less than $2 a kilogram – the price at which hydrogen becomes competitive with higher emitting alternatives.

The Government has invested more than $1 billion to support Australia’s clean hydrogen industry.  This includes $275.5 million in the 2021-22 Budget to support the development of regional hydrogen hubs with Gladstone identified as a prospective location.

Australia and Japan are already working closely to accelerate the development and commercialisation of low emissions technologies. Last month Japan and Australia reaffirmed this commitment. Achieving cost parity with high emitting alternatives is vital for decarbonisation efforts and making a net zero emissions future practically achievable.

This project builds on the already strong cooperation through initiatives and statements such as the $496 million Hydrogen Energy Supply Chain coal-to-hydrogen project in the Latrobe Valley and the Australia-Japan Joint Statement of Cooperation on Hydrogen and Fuel Cells.

Along with Japan, the Government has also entered into partnerships with Germany, the United Kingdom, and Singapore to accelerate the development of low emissions technologies, including hydrogen, to drive investment and job creation in Australia.

The Government has previously provided $913,667 to Stanwell to support a feasibility study into a 10-megawatt electrolyser deployment project at the Stanwell Power Station near Rockhampton, Queensland, to supply domestic hydrogen.

Media contact:

Minister Taylor's office 02 6277 7120