IHI Engineering Australia will begin construction on the site in six months’ time, having been awarded an engineering, procurement and construction (EPC) contract from CS Energy.

Supporting the build out of its evolving hydrogen economy, the Queensland Government has said it will provide $28.9m towards the project and a refuelling network in the Western Downs region of Queensland.

Mick de Brenni, Queensland’s Minister for Energy, Renewables and Hydrogen, said, “he Kogan Renewable Hydrogen Demonstration Project will produce 50,000 kilograms of renewable hydrogen each year when operational in 2023.

“It is one of the most advanced renewable hydrogen projects in Queensland, with CS Energy’s recently announced collaboration with Japan’s Sojitz Corporation to export hydrogen to Palau, as well as strong interest from potential off-takers in the domestic heavy transport and haulage sector.

“Queensland has a unique competitive advantage in the production of renewable hydrogen, with our proximity to Asia, established infrastructure, manufacturing capabilities and renewable energy generation.”

The site will be built next to CS Energy’s Kogan Creek Power station and will be powered by renewable energy from the solar farm. Once the plant development is complete, CS Energy will operate and maintain the plant.

Andrew Bills, CEO of CS Energy, said, “This demonstration project will provide CS Energy with valuable expertise and learnings so that we can establish a footprint in the renewable hydrogen sector and prepare for upscaling to commercial scale.

“As Australia’s energy sector transforms, its’s really important that CS Energy diversifies our revenue streams so that we create a sustainable future for the business.”

Motoya Nakamura, Managing Director of IHI Engineering, added, “IHI welcomes the opportunity to be involved in the initial stages of kick-starting the global green hydrogen and ammonia value chain and is committed to the development of this new industry in Australia.

“IHI has been a significant contributor to the development of the energy sector in Australia over the last 50 years and looks forward to expanding out low carbon project portfolio over the 50 years to come.”