Bowen taken aback by Queensland’s sudden withdrawal of $12.5 billion hydrogen project support

February 3, 2025 TruthUSA

Gladstone Mayor Matt Burnett expressed optimism that the project could still move forward even without state government support.

However, Bowen indicated that the federal government still supports it.

“The threat to withdraw funding is surprising and disappointing given that this project creates nearly 9,000 jobs and was expected to generate $8.9 billion for the local economy. The Albanese government is firmly committed to seeing Gladstone’s economy grow and creating new jobs for the region,” he told the ABC.

“Green hydrogen plays to Australia’s unique strengths and we’re unapologetic about pursuing an industry that is recognized as having an important role in the future of manufacturing and energy in Australia, and globally.”

Bowen noted that while the Albanese government supports hydrogen across Australia, the final decision on the project was an investment decision for the consortium.

“Government support in developing hydrogen opportunities around the country provides additional certainty for projects; however, how they progress ultimately remains a commercial decision for the parties involved.”

The Central Queensland Hydrogen Project (CQ-H2) aims to build a facility near Gladstone, Queensland, to create and export clean hydrogen.

It involves producing hydrogen via electrolysis, splitting water into hydrogen and oxygen using renewable energy sources like solar power and wind.

The goal is to generate 200 tonnes of liquefied hydrogen by 2028 and 800 tonnes by 2031. This is expected to add $8.9 billion to the central Queensland economy and $14.5 billion in exports.

Queensland Treasurer David Janetzki rejected a request for an estimated $1.6 billion more for the project from Stanwell Corporation.

Stanwell Corporation is part of a consortium that is developing the project, including several Japanese- and Singapore-based companies.

“We are focused on our energy generators providing affordable, reliable and sustainable power for Queenslanders,” Janetzki said in a statement.

He noted that Stanwell’s investment did not align with the government’s objectives to focus on core financial and operational performance and maximize value from existing generation assets for Queenslanders.

Optimism Project Could Still Go Ahead

Meanwhile, Gladstone Mayor Matt Burnett said the project was good for Queensland and expressed optimism that it could still move forward even without state government support.

He said that despite “alarmist” headlines, it was “fantastic to see the CQ-H2 project is pressing ahead, with Stanwell not handing back more than $1.4 billion in proposed Australian Renewable Energy Agency (ARENA) funding from the Australian government.”

“While I understand the Queensland Government will not necessarily be matching the ARENA funding, the project has secured billions of dollars in international investment and private equity,” Burnett said .

“The consortium partners know Gladstone has the proven track record of delivering; we have provided energy to international markets for decades and that will continue well into the future.”

Labor, Greens Policy in ‘Shambles’: Coalition

But Liberal-National Party federal MP for Flynn Colin Boyce labeled the Labor-Greens energy policy as “thin air” following the axing of the hydrogen “pipe dream.”

Boyce said policy was in shambles, with an increasing number of green hydrogen projects falling apart.

“They should be focusing on helping the economy and supporting our manufacturing sector, which is faltering and under threat from the Labor-Greens government’s spiraling power costs, home-grown high-interest rates, and inflation,” he said.

Boyce said reports showed the $12.5 billion estimated cost of construction had blown out to $14.75 billion in a 2022 feasibility study and has since risen significantly more due to worldwide hikes in input costs.

“Instead of getting the fundamentals right, the Labor-Greens government has indulged in billions of magic pudding spending on technologies which are years away from commercial reality and which clearly do not stand up on their own merit,” he said.

“This is all part of their failed all-eggs-in-one-basket ‘renewables only’ approach, and it’s Australian taxpayers who are picking up the bill.”

He said Labor’s vision of becoming a green hydrogen superpower included 26,000 kilometers of transmission lines carpeting regional Australia.

“For every kilogram of green hydrogen, at least 9 liters of water is required. Production needs secure access to water, and nobody knows where all the required water is going to come from for a hydrogen industry in Gladstone.”

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