Keppel part of push behind 3 GW green hydrogen project


Singaporean conglomerate Keppel Infrastructure has added its weight to the consortium driving the development of the $12.4 billion (USD 8.47 billion) Central Queensland Hydrogen Hub (CQ-H2) project which would initially involve the installation of up to 640 MW of electrolysers to produce green hydrogen for domestic use and export commencing in 2028.

Keppel is now part of the CQ-H2 consortium that includes Queensland-government owned generator Stanwell, Japanese energy companies Iwatani, Kansai Electric Power Corporation, Marubeni, and Kawasaki Heavy Industries, and Sydney-based energy infrastructure business APA Group.

The CQ-H2 project, being developed at Aldoga, about 20 kilometres northwest of Gladstone, would initially involve the installation of up to 640 MW of electrolysers to produce 73,000 tonnes of green hydrogen per annum by 2028 for export to Asian markets, as well as supplying large domestic customers in central Queensland.

It is proposed the project, which has signed an agreement to source renewable energy from Spanish renewable energy company Acciona Energia’s proposed 600 MWp Aldoga Solar Farm, will ultimately scale up to more than 3 GW of electrolysis capacity producing to 292,000 tonnes per annum by the early 2030s.

The consortium has already initiated a front end engineering design study with final investment decision expected in late 2024 and commercial operations targeted to commence in 2028.

Keppel said when it announced it would join the consortium that the move is part of the company’s strategic plan to intensify its efforts in the development of green hydrogen and ammonia production for use in Australia and export to Asia.

“There is increasing demand from governments and industries for carbon-free hydrogen, particularly for use in decarbonising hard-to-abate sectors such as steel, cement and ammonia production as well as heavy-duty transportation,” Keppel Infrastructure Division Chief Executive Officer Cindy Lim said.

“Keppel is leveraging our domain knowledge and wide range of capabilities to develop integrated sustainable energy solutions across the value chain, in line with our Vision 2030.”

Lim said Keppel’s track record in developing and operating large-scale energy infrastructure will help to produce and transport green hydrogen in a “scalable and cost competitive manner for end-users in Australia, Singapore and globally.”

Keppel’s participation in the consortium also provides the company with access to a source of green hydrogen as feedstock for a green ammonia production facility which it plans to develop at Gladstone with fertiliser and chemical manufacturer Incitec Pivot Limited (IPL).

Keppel earlier this year signed a memorandum of understanding (MOU) with IPL to explore the development of a green ammonia production facility capable of producing up to 850,000 tonnes per annum for both domestic and overseas consumption, including an end-to-end export supply chain to Singapore and Asia.

The MOU follows from an earlier feasibility study which Keppel, IPL and Temasek commenced in 2021 on producing green ammonia in Australia for export.

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