Keppel Corporation is intensifying its efforts to produce and use of green H2 and ammonia as low-carbon energy sources through joining a consortium to develop a large-scale green H2 project in Australia and the signing of a Memorandum of Understanding (MoU) with Incitec Pivot Limited (IPL) on an industrial-scale green ammonia production facility in Australia.
As part of Keppel’s strategic plan to participate and capitalize on the projected growth of the H2 economy, especially in helping decarbonize hard-to-abate sectors, Keppel has signed an agreement today to join the Central Queensland H2 (CQ-H2) project consortium, which is developing a H2 production facility, among other related infrastructure. The CQ-H2 project aims to produce renewable H2, scalable to up to around 2,500-MW equivalent, and deliver via its different carriers to Japan and Singapore, as well as supplying large domestic customers in Central Queensland.
The CQ-H2 project is one of Australia’s largest green H2 projects and the consortium comprises Stanwell Corporation, Iwatani Corporation, Kansai Electric Power Company, Marubeni Corporation and Keppel. The consortium has initiated a front-end engineering design (FEED) study representing the largest investment in an Australian renewable H2 project of its kind to-date, with final investment decision (FID) planned for late 2024 and commercial operations targeted to commence in 2028.
Keppel’s participation in the consortium provides the company with a competitive advantage of having access to a ready and reliable source of green H2 as feedstock for a green ammonia production facility which it plans to develop with IPL and other potential partners.
Mr Cameron Dick, Queensland’s Treasurer and Minister for Trade and Investment said, “Global demand for renewable H2 is accelerating to support energy transition and domestic energy security, Queensland Treasury has had a key role in facilitating and funding the Central Queensland H2 project. After several discussions with Keppel, we are delighted the company and Incitec Pivot have chosen Gladstone for their green ammonia production facility. This will open exciting and significant export possibilities, let alone regional jobs.”
Ms Cindy Lim, CEO of Keppel’s Infrastructure Division, said, “Through Keppel’s involvement in the CQ-H2 consortium, and our partnership with Incitec Pivot, we are redoubling our efforts in making green H2 and ammonia reliable and commercially viable energy sources. Keppel’s strong track record in developing and operating large-scale energy and environmental infrastructure combined with the expertise and experience of our esteemed partners will enable us to produce, store and transport green H2 and ammonia in a safe, scalable and cost competitive manner for end-users in Australia, Singapore and globally.
“There is increasing demand from governments and industries for carbon-free H2, particularly for use in decarbonizing hard-to-abate sectors such as steel, cement and ammonia production as well as heavy-duty transportation. Keppel is leveraging our domain knowledge and wide range of capabilities to develop integrated sustainable energy solutions across the value chain, in line with our Vision 2030.”