Renewable hydrogen has the potential to change how we power our lives – and the stage is set for Queensland to be a major player in this emerging global industry. 

Hydrogen (from the Greek for ‘water former’) is the first element in the periodic table. It’s both the most abundant element in the universe, found in everything from the stars in the night sky to the water we drink, and the simplest, made of just one proton and one electron. 

Despite its universal ubiquity, hydrogen is rarely found in its elemental (pure) form here on Earth. Instead, it has to be separated from other elements that it bonds with to form molecules, such as water (made of two hydrogen atoms bonded to an oxygen atom, hence H2O) or methane (made of one carbon atom bonded to four hydrogen atoms, hence CH4).  

When released from these molecular structures, hydrogen is an energy carrier that can be used to power almost anything, including heavy vehicles, refineries and other industrial facilities. Hydrogen can also be used to supplement and replace natural gas in domestic gas networks, and it can be chemically converted into other forms, such as ammonia. 

What is renewable hydrogen? 

Traditional methods of hydrogen production – including a steam methane reformation process using natural gas, and a coal gasification method – have been emissions-intensive, because of their reliance on fossil fuels.

It is possible, however, for hydrogen to be produced without emitting any greenhouse gases. This is done through a process called electrolysis, in which an electric current is used to drive a chemical reaction. Electrolysis has been used in various applications for over 100 years, but large-scale hydrogen production is a newer application of the technology. 

When a device called an electrolyser is used to apply electricity to purified water, the water splits into its constituent elements – hydrogen and oxygen. The hydrogen is then collected and the oxygen is allowed to harmlessly enter into the atmosphere. 

When the energy that powers these electrolysers comes from renewable sources – such as wind or solar power – then there are no emissions required to produce the hydrogen, and it can be classified as renewable hydrogen.

What’s the potential for renewable hydrogen in Queensland? 

Blessed with incredible natural resources, Queensland has such an abundance of sunshine and wind that the state’s solar panels and wind turbines can sometimes generate more energy than the electricity grid requires. Rather than going to waste, this ‘excess’ renewable energy – also known as curtailed energy – can be used to produce renewable hydrogen. 

This renewable hydrogen can play a significant role in decarbonising Queensland’s energy mix. Domestic applications for renewable hydrogen include: 

• Transport, with hydrogen fuel cells offering an alternative to batteries for powering electric motors. Renewable hydrogen is especially well suited to powering heavy vehicles that require long driving ranges and quick refuelling times. 

• Powering refineries and other energy-intensive industrial facilities and processes that have proven difficult to decarbonise so far, and producing ammonia and fertilisers. 

• Firming the electricity grid. Hydrogen can be stored for long periods of time and converted back into electricity when the energy market needs it. Electrolysers can also ramp production up and down rapidly to match or supplement the variable output of wind and solar generators, helping to ensure electricity supply at times of peak demand.

• Replacing or partially substituting natural gas for cooking and heating in homes.

Under the Queensland Energy and Jobs Plan, it’s expected that Queensland may convert existing gas turbines and install new gas turbines that can be fuelled by renewable hydrogen, or a renewable hydrogen blend, to reduce emissions further. 

And in October 2023, the Gas Supply and Other Legislation (Hydrogen Industry Development) Amendment Bill 2023 was passed. The Bill applies the existing safety frameworks for gas pipelines in Queensland to hydrogen and hydrogen blends, providing a regulatory pathway for the state’s transmission pipelines to transport renewable hydrogen and hydrogen carriers, such as ammonia and methanol. 

But the greatest potential for renewable hydrogen in Queensland is likely to be in international trade. Renewable hydrogen is expected to be in particularly high demand in countries such as Japan, Singapore and Korea, where opportunities for domestic production are limited. 

A distinct advantage for Queensland in this regard is the state’s close proximity to Asian markets, as well as the 21 world-class ports and existing export infrastructure already in place throughout the state. The process of liquifying renewable hydrogen for export is similar to the existing liquefied natural gas (LNG) export industry, in which Queensland is already well established. 

Renewable hydrogen therefore presents an opportunity to open a new export market for Queensland, attract foreign investment and create new jobs. To support this, the Queensland Government is developing and expanding the production of renewable hydrogen in Queensland through the $4.5 billion Queensland Renewable Energy and Hydrogen Jobs Fund. 

There are more than 50 hydrogen projects currently underway across the state, headlined by the Central Queensland Renewable Hydrogen Project (CQ-H2), the largest project of its kind in the country. 

Stanwell, a Queensland Government-owned corporation, is working with domestic and international partners from across the hydrogen supply chain – including Japan’s Iwatani Corporation and Marubeni Corporation, and Singapore’s Keppel Limited – to develop CQ-H2 in the Gladstone region.

The CQ-H2 Project involves the development of a hydrogen production facility at Aldoga, near Gladstone, the development of a hydrogen gas pipeline to transport hydrogen to Gladstone Port, the development of a hydrogen liquefaction facility and ship loading facilities at Gladstone Port, and the supply of hydrogen to an ammonia production facility at Gladstone Port.

Commercial operations are planned to commence from 2029. If progressed, the project aims to deliver renewable hydrogen to Japan and Singapore, as well as supplying large domestic customers in Central Queensland. The project could scale up to produce 800 tonnes per day of clean, renewable hydrogen by the early 2030s.

Over its 30-year life, the project is expected to deliver $14.5 billion in hydrogen exports and add $8.9 billion to Central Queensland’s Gross Regional Product, while creating thousands of jobs in Central Queensland during construction and support an additional 1,000 jobs annually during its operational life.

A feasibility study for the project was successfully completed in 2022, with a Front End Engineering Design (FEED) study now underway. This study is developing the technical, commercial and strategic elements of the project to support a Final Investment Decision.

Ultimately, the development of a thriving renewable hydrogen economy is an important step towards a more sustainable future – and some of the most exciting progress towards that future is being made right here in Queensland.