Renewable hydrogen is emerging as a key player in the global transition to clean energy, helping to reduce emissions while creating new economic opportunities. But what exactly is hydrogen, and how can it help us achieve a more sustainable future? 

What is hydrogen? 

Hydrogen (H2) is the most abundant element in the universe. Consisting of just one proton and one electron, it’s found in everything from stars to water – but here on Earth, it rarely exists in its pure form. 

Instead, it’s bonded with other elements, such as oxygen (O2) in water (‘H2O’, the chemical formula for water, represents two hydrogen atoms bonded to one oxygen atom) and carbon in methane (‘CH4’, the chemical formula for methane, represents one carbon atom bonded to four hydrogen atoms).   To use hydrogen as an energy source, we must separate it from these compounds – a process that requires energy.

Once isolated, hydrogen becomes a versatile energy carrier. It can power heavy vehicles, industrial processes, and even be used to produce ammonia and fertilisers. Hydrogen can also be stored and later converted back into electricity, making it a key player in balancing renewable energy systems.

How has hydrogen traditionally been produced? 

Historically, hydrogen has been produced using fossil fuels, making the process highly emissions-intensive. Two common methods are steam methane reforming and coal gasification. Steam methane reforming uses natural gas (primarily methane) and high-temperature steam to produce hydrogen. This process releases significant amounts of carbon dioxide (CO2) as a byproduct, contributing to greenhouse gas emissions.

Coal gasification is a process that uses heat and pressure to turn coal into a mixture of gases. The process typically occurs in a gasifier, where the coal is exposed to a controlled amount of oxygen and steam. This produces hydrogen, but it also produces carbon dioxide and carbon monoxide (CO). Like steam methane reforming, this method also contributes to climate change.

What is renewable hydrogen? 

Renewable hydrogen is produced using a process called electrolysis. Electrolysis involves passing an electric current through purified water, splitting the water into its basic components – hydrogen and oxygen. The device used to apply an electric current to purified water is called an electrolyser. 

The energy used in this process is crucial. When the energy powering the electrolyser comes from renewable sources, such as solar or wind power, the entire process generates no carbon emissions. This makes renewable hydrogen a clean, sustainable energy source. The oxygen produced is a harmless byproduct, typically released into the atmosphere, while the hydrogen is captured and stored for use in a variety of applications.

Renewable hydrogen is also called ‘green hydrogen’, although the hydrogen itself doesn’t have a colour – it’s actually an invisible gas. Colour-coding is simply used to differentiate between the various methods of hydrogen production. 

Although electrolysis has been used for over a century, its application in large-scale hydrogen production is relatively new. Today, electrolysis is still more expensive than traditional hydrogen production methods, but as renewable energy costs continue to fall and electrolysis technology improves, green hydrogen is expected to become more economically viable and widely used.

What can renewable hydrogen be used for? 

Renewable hydrogen can be used for a variety of purposes, including: 

Firming the electricity grid

Hydrogen can be stored for long periods of time and converted back into electricity at times of peak demand, helping to stabilise the electricity grid and balance out the intermittent nature of wind and solar power. Electrolysers can also ramp production up and down rapidly as needed.

Transport

Hydrogen fuel cells offer an alternative to batteries for powering electric motors. In a hydrogen fuel cell, hydrogen reacts with oxygen to generate electricity, with the only byproduct being water. 

Hydrogen fuel cells are especially well-suited for heavy vehicles, such as trucks and buses, which require long driving ranges and quick refuelling times. Hydrogen fuel cells can also be used in sectors like shipping and aviation, where traditional battery technology may not be practical due to weight and range limitations.

Industrial processes 

Many industrial processes, such as refining, steel production, and ammonia and fertiliser production, are extremely energy-intensive and have traditionally relied on fossil fuels. These industries have been difficult to decarbonise because of the high temperatures and energy demands required. 

Hydrogen offers a clean alternative to fossil fuels in these sectors, providing a pathway to reducing emissions in industries that have so far proven resistant to decarbonisation.

Natural gas replacement 

In Queensland, renewable hydrogen is being explored as a substitute for natural gas in domestic gas networks. Hydrogen can be blended with or replace natural gas for cooking and heating in homes. 

To enable this transition, the Queensland Government passed the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Bill 2023. This legislation applies existing safety frameworks for gas pipelines to hydrogen and hydrogen blends, creating a regulatory pathway for the state’s transmission pipelines to transport renewable hydrogen and its carriers, such as ammonia and methanol.

As part of Queensland’s energy transition, the government also plans to convert existing gas turbines and install new ones that can run on renewable hydrogen or a hydrogen-natural gas blend, further reducing emissions in the state’s energy system.

How is Queensland leading the way in renewable hydrogen? 

Queensland’s abundant solar and wind resources provide the foundation for the state’s ambitious renewable hydrogen goals. 

As well as helping to reduce Queensland’s emissions, renewable hydrogen production is expected to open a new export market for the state. International demand for renewable hydrogen is on the rise, particularly in countries where domestic production is limited by a lack of renewable resources. Queensland is strongly positioned to become a major exporter of green hydrogen to countries like Japan, South Korea and Singapore.

One of Queensland’s key advantages in this regard is its existing export infrastructure, including 21 world-class ports and its well-established liquefied natural gas (LNG) industry. The process of liquefying renewable hydrogen for export is similar to the LNG export process.

The Queensland Government has committed $4.5 billion through its Renewable Energy and Hydrogen Jobs Fund to develop a thriving hydrogen industry, and there are more than 50 hydrogen projects currently underway across the state, headlined by the Central Queensland Hydrogen Project (CQ-H2). 

Stanwell is developing CQ-H2 in partnership with Japanese foundation companies Iwatani Corporation and Marubeni Corporation, and Singapore’s Keppel Limited. The project involves: 

• A hydrogen production facility: Located in Aldoga near Gladstone, this facility will use electrolysis to produce clean, green hydrogen. 

• A hydrogen gas pipeline: A dedicated pipeline will transport the hydrogen to Gladstone Port. 

• Hydrogen liquefaction and ship loading facilities: Hydrogen will be liquefied for export to international markets, particularly Japan and Singapore, from Gladstone Port. 

• Ammonia production: Hydrogen will also supply an ammonia production facility at Gladstone Port. 

CQ-H2 could become the largest renewable hydrogen project in Queensland, eventually scaling up to produce 800 tonnes per day of clean, green hydrogen by the early 2030s.

CQ-H2 is at an advanced stage, with the CQ-H2 consortium nearing completion of a Front-End Engineering Design (FEED) Study for the Project. The FEED study includes a commitment of AU$117 million from government and consortium partners. 

The Australian Government, via its Clean Hydrogen Industrial Hubs program, has also announced $69.2 million in funding to Stanwell to support the development of the Central Queensland Hydrogen Hub.

Will renewable hydrogen create jobs? 

The renewable hydrogen industry is set to create thousands of jobs across Queensland, particularly in regional areas. And as Queensland’s energy mix evolves, workers at traditional power stations will have opportunities to transition into the renewable energy sector. 

To support this transition, the Queensland Government has released the Hydrogen Industry Workforce Development Roadmap 2022–2032, developed in collaboration with industry, training providers, universities, and regional bodies. This is Australia’s first hydrogen workforce plan, designed to build a pipeline of skilled workers ready to support the growing hydrogen industry over the next decade. The roadmap outlines strategies to ensure Queensland’s workforce is hydrogen-ready, focusing on upskilling and reskilling workers for the emerging hydrogen economy.

Stanwell is playing a key role in building this workforce. Stanwell has partnered with CQUniversity to collaborate on skills, training and technology initiatives focused on renewable hydrogen, and is complementing CQU’s research facilities with access to the Future Energy Innovation and Training Hub (FEITH) near Rockhampton. 

FEITH will also provide hands-on training for energy workers, equipping them with the skills needed for new energy technologies, including hydrogen. Other training facilities across the state will also support the development of a hydrogen-ready workforce.

With its natural resources, world-class infrastructure, and proximity to export markets, Queensland is well-positioned to become a global leader in renewable hydrogen production –  delivering both economic and environmental benefits for decades to come.