Queensland Renewable Energy and Hydrogen Jobs Fund

The Queensland Renewable Energy and Hydrogen Jobs Fund allows energy Government owned corporations to increase ownership of commercial renewable energy and hydrogen projects, as well as supporting infrastructure, including in partnership with the private sector.

The existing skills and expertise from the energy Government owned corporations will be used to engage with market proponents and identify commercial investment proposals, with opportunities for appropriate returns for government.

The Fund complements the commitment of $145 million to establish three Queensland Renewable Energy Zones – the northern, central and southern QREZs – to support significant renewables investment. In these areas, the government will undertake strategic network investments, streamline the development of new renewable energy projects, and work to match new and existing industrial energy demand with our low-cost renewable energy.

As outlined in the Queensland Energy and Jobs Plan, this funding will ensure publicly-owned energy businesses can continue to invest in renewable energy, storage and hydrogen projects in the QREZ regions, and will help deliver on the long-term targets for these regions to reach at least 25 gigawatts of total renewable energy by 2035.

Key investment objectives and criteria

Government owned corporations can present investment and funding proposals for consideration and approval through the Fund.

Investment proposals will be considered based on the key objectives set by Government, including:

Renewable energy and hydrogen

• The Fund will consider investment proposals that support additional renewable energy generation and storage capacity in Queensland, and the transition to Queensland’s 50 per cent Renewable Energy Target by 2030. This includes, but is not limited to, solar, wind, batteries, hydrogen and supporting network infrastructure.

Commerciality

• Investment proposals must demonstrate commercial value.

Employment and jobs

• Investments must create new and ongoing employment opportunities in Queensland consistent with the Government’s employment and procurement policies.

Timeframes

Investments are expected to be made progressively as opportunities are identified, and proposals are developed by government-owned corporations and approved through the Fund.

Projects

Queensland Renewable Energy and Hydrogen Jobs Fund projects announced-to-date include:

Wambo Wind Farm

Stanwell has been allocated $192.5 million towards its investment in the 252 MW Wambo Wind Farm, which it will develop in partnership with global renewables developer, Cubico. Stanwell will own 50 per cent of the wind farm and offtake the remaining 50 per cent through a power agreement. Construction of the wind farm is expected to commence shortly and be operational by 2024.

Tarong West Wind Farm

Stanwell has been allocated $776.1 million to build the Tarong West Wind Farm in the South Burnett region of Queensland. As Australia’s largest publicly-owned wind farm, Tarong West could generate up to 500 MW capacity, enough clean energy to power up to 230,000 homes. The wind farm could be built in a strategic partnership with global renewable energy giant RES. A final decision is expected in 2024, and if approved, construction would also commence in 2024, with commercial operations from 2026.

Central Queensland Hydrogen Project

The Central Queensland Hydrogen Project is seeking to commercialise the production and liquefaction of renewable hydrogen and large-scale export to Japan. Through the Fund, Stanwell is receiving $15 million to progress detailed engineering and design works for this project, which will inform future investment decisions.

Kogan Renewable Hydrogen Project

With a $28.9 million allocation from the Fund, CS Energy is partnering with Senex Energy to develop the Kogan Renewable Hydrogen Project, including a demonstration plant and refuelling facilities near Chinchilla. The project will include the co-location of a solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage and out loading facility. IHI Engineering Australia (a subsidiary of IHI Corporation Japan) will construct the demonstration plant, with work expected to commence in the second half of 2022 and commissioning in 2023.

Greenbank Battery

CS Energy will build, own and operate a 200MW / 400MWh battery to be located at Powerlink’s Greenbank substation, south of Brisbane. It will be critical for soaking up our sunshine and wind to feed into the system when Queenslanders need it. Construction is due to begin in 2023 and take around 18 months to complete.

Large-Scale and Community Batteries

Announced as part of the Queensland Energy and Jobs Plan, the Queensland Government will invest a further $500 million for more large-scale and community batteries. This funding will enable Queensland’s publicly owned energy businesses to invest in battery projects across the State.

Central Queensland Wind Farms

Announced as part of the Queensland Energy and Jobs Plan, the Government is backing new wind farm developments in Central Queensland. Prospective projects may include the Banana Range Wind Farm near Biloela and the Boulder Creek Wind Farm near Mount Morgan.

Swanbank Battery

CleanCo is investigating the deployment of a large-scale battery at its existing Swanbank site.

Hydrogen-Ready Gas Peaking Power Station at Kogan Creek

The Queensland Government will invest in a new 200 MW hydrogen-ready gas peaking power station at Kogan Creek to be developed by CS Energy in partnership with Iberdrola.

Next steps

The Fund will continue to evaluate investment opportunities submitted by Government owned corporations.