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Worley awarded FEED contract for CQ-H2 project

Worley awarded FEED contract for CQ-H2 project
An artist's rendering of the planned Central Queensland Hydrogen (CQ-H2) Project (image courtesy Worley).

Australia-headed Global engineering consultancy provider WorleyParsons Ltd (Worley) has announced that it has been awarded the front-end engineering and design (FEED) work for the Central Queensland Hydrogen (CQ-H2) Project under development in Gladstone, Queensland (QLD).

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Led by Stanwell Corporation Ltd and its consortium members; Iwatani Corporation, Kansai Electric Power Company, Marubeni, and Keppel Infrastructure, the Central Queensland Hydrogen (CQ-H2) Project is the largest investment in an Australian renewable hydrogen project to date.

It also ranks in the global top 10 hydrogen projects at the pre-Final Investment Decision (FID) stage.

The CQ-H2 project initially plans to install up to 640 MW of electrolyzers and produce up to 200 tonnes of gaseous renewable hydrogen per day with offtakers purchasing the gas to convert to renewable ammonia or liquified hydrogen.

It also aims to deliver renewable hydrogen via its different carriers, to Japan and Singapore, as well as supplying large domestic customers in Central Queensland.

Supporting Australia’s decarbonization journey

Worley has previously worked on the project as a technical advisor during the initial feasibility study phase.

Now, the scope is to supply the FEED study for the Hydrogen Production Facility (HPF) and Hydrogen Transfer Facility (HTF), along with the pre-FEED study for the Hydrogen Liquefaction Facility (HLF).

The project is backed by funding from all consortium members, the Australian Renewable Energy Agency (ARENA), and the Queensland Government’s Queensland Renewable Energy and Hydrogen Jobs Fund.

At its peak, the CQ-H2 project is expected to support more than 8,900 new jobs, deliver AU$17.2 billion in hydrogen exports, and add AU$12.4 billion to Queensland’s Gross State Product over its 30-year life.

The advancement of this important hydrogen project is great news for Central Queensland, where the project could create thousands of jobs and deliver billions of dollars in economic benefit, commented Michael O’Rourke, CEO of Stanwell Corporation during the FEED investment signing.

Commercial operations are expected to start in 2028. If successful, the CQ-H2 project will ramp up in future phases to full-scale operations of approximately 2,240 MW of electrolyzer capacity, capable of producing 800 tonnes per day of gaseous renewable hydrogen by 2031.

The Central Queensland Hydrogen Project is a landmark project, set to propel Stanwell’s operations, the Gladstone region, and Queensland as a whole into a leading exporter of green energy. Our work with Stanwell to date demonstrates our unique ability to support projects right from early concept studies into front-end design, and we are looking to continue that support post-FID into the execution stage. The project is aligned with our purpose of delivering a more sustainable world and is set to play a pivotal role in Australia’s decarbonization journey, said Gillian Cagney, President – Australia & New Zealand for Worley.

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