CS Energy, Senex to build green hydrogen plant in Queensland
CS Energy and Senex Energy have signed a deal to develop a green hydrogen project in Queensland, the state government said on May 4.
Queensland’s minister for energy, renewables and hydrogen Mick de Brenni said publicly-owned CS Energy and natural gas producer Senex have agreed to form a joint venture to develop the Kogan renewable hydrogen demonstration plant near Chinchilla. De Brenni said the state government is backing CS Energy with A$28.9mn for the demonstration plant and a refueller network.
“Green hydrogen is key to diversifying our energy sector, building on our long-term energy know-how in regional Queensland and attracting significant international investment in job creating heavy manufacturing,” de Brenni said.
“This green hydrogen will be used in the latest stop on our hydrogen superhighway established with New South Wales and Victoria and help develop Australia’s energy independence via the transport sector,” the minister added.
Under the joint venture agreement, CS Energy will operate and hold 75% equity in the plant, while Senex will hold 25% interest.
CS Energy CEO Andrew Bills said both companies recognised the enormous potential of renewable hydrogen to contribute to a low-carbon future in Australia.
“Senex Energy’s experience in the gas sector will be invaluable during the demonstration and as we evaluate future opportunities to increase renewable hydrogen production to commercial scale,” Bills said.
Senex CEO Ian Davies said the company’s participation in the project underlined its commitment to the supply of reliable, affordable and sustainable energy that is vital to the economy and jobs.
“To ensure Queensland’s and Australia’s energy security, and reach net-zero targets, we need all forms of energy to work together. The natural gas sector is the ideal partner for the development of a renewable hydrogen industry and that’s why we’re investing in this project,” Davies said.
The Kogan renewable hydrogen demonstration plant will be built next to CS Energy’s Kogan Creek power station. The project will include the co-location of a solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage and out loading facility.
IHI Engineering Australia, a subsidiary of IHI Corporation Japan, has been appointed to construct the plant, with work due to start on site in September this year.