Queensland government-owned utility CS Energy has formalised its joint venture (JV) arrangements with Senex, owned by South Korean steel giant Posco alongside Gina Rinehart’s Hancock Energy, to develop the Kogan Renewable Hydrogen Demonstration Plant near Chinchilla in the Western Downs region.
Construction of the facility is expected to start within months after outgoing CS Energy Chief Executive Officer Andrew Bills and Senex counterpart Ian Davies met recently in CS Energy’s Brisbane office to finalise the joint venture agreement.
“Both of our companies recognise the enormous potential of renewable hydrogen to contribute to a low-carbon future in Australia,” CS Energy said in a statement.
“Under the JV, CS Energy will operate and hold 75% equity in the plant, while Senex Energy will hold 25% equity in the plant.”
The Kogan Renewable Hydrogen Demonstration Plant will include a circa 1 MW hydrogen electrolyser powered by a co-located 2 MW solar farm. The project will also include a hydrogen fuel cell now expected to be up to 30 kW, on-site hydrogen storage and out-loading facility.
The project is being built next to CS Energy’s existing coal-fired Kogan Creek Power Station and will form part of an energy hub that is to also include a 100 MW/200 MWh battery energy storage system.
CS Energy said the aim of the project is to produce green hydrogen and provide energy and other grid services while gaining expertise from an operational hydrogen project from production, storage, transport and handling.
No update has been provided on when the hydrogen project will be operational but IHI Engineering Australia, a subsidiary of Japanese industrial giant IHI Corporation, has been appointed to construct the Kogan Creek plant, and work expected to start in the coming months.
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