The Australian Renewable Energy Agency (ARENA) has today announced up to $2.17 million in funding to Stanwell Corporation Limited to complete a feasibility study for a proposed hydrogen export project located in Gladstone, Queensland.
A key challenge of producing cost-competitive green hydrogen by electrolysis is the high capital costs of equipment. Large export-scale projects have the potential to improve cost competitiveness due to economies of scale.
The study, delivered in partnership with Japan’s largest hydrogen supplier Iwatani Corporation, will investigate the feasibility of developing a hydrogen production facility capable of producing up to 36,500 tonnes per annum of renewable hydrogen and export to Japan from 2026. Stanwell and Iwatani’s long term plan is to scale up to 328,500 tonnes per annum in 2031 to meet forecast Japanese demand. Stanwell is proposing to ship hydrogen in liquid form utilising liquid hydrogen shipping vessels.
The $10.4 million study is also supported by investment from a broader consortium of Japanese and domestic partners including Kansai Electric Power Corporation, Marubeni Corporation, Kawasaki Heavy Industries and APA Group, and funding support from the Japanese Ministry of Economy, Trade and Industry.
ARENA CEO, Darren Miller, said the project represents an opportunity to investigate the potential of Australia becoming a significant exporter of renewable hydrogen.
“Stanwell’s study presents a significant opportunity to accelerate the development of export opportunities for renewable hydrogen in Australia and to work with a highly credible consortium from Japan that has the potential to deliver a large scale export project,” Mr Miller said.
“Australia’s vast solar and wind resources and our proven ability to export energy products mean we are well placed to build a large-scale competitive hydrogen export industry in the future. Feasibility studies like this are a necessary and crucial step to build the case to attract the finance required for large impactful projects.”