Bowen insists hydrogen pipe dream is still alive
The Albanese government’s offer of funding for Australia’s largest green hydrogen project remains on the table despite the Queensland government pulling out of the proposal.
The Albanese government’s offer of funding for Australia’s largest green hydrogen project remains on the table despite the Queensland government pulling out of the proposed $12.5bn plant and pipeline in Gladstone.
Federal Climate Change and Energy Minister Chris Bowen on Monday blasted the state government for refusing to invest any further in the now-struggling project, which was touted as being able to produce up to 800 tonnes of liquefied hydrogen by 2031.
Queensland Treasurer David Janetzki told The Australian on Sunday he had rejected a funding request – believed to be $1.6bn by the end of the month – from the state-owned electricity generator Stanwell Corporation, which leads the public-private consortium developing the project.
Mr Janetzki’s refusal is a major blow to the project, and it follows a decision by Japanese utility Kansai Electric Power Company to withdraw from the consortium last November, citing higher than expected costs.
The remaining Japanese and Singapore-based companies that are partners in the consortium have yet to announce if they intend to proceed with the project.
In a statement, Stanwell, the biggest electricity generator in Queensland, said it was “considering the state’s announcement” in refusing to further fund the ambitious project, which was championed by the former Labor state government.
“Stanwell Corporation is also reviewing its involvement in other hydrogen initiatives and will work with relevant stakeholders regarding future steps for these projects,’’ the statement said.
Stanwell would not comment on the level of federal funding on offer in the latest round of the Albanese government’s $2bn Hydrogen Headstart program, of which Gladstone had been one of six projects shortlisted in 2023.
Gladstone mayor Matt Burnett, who unsuccessfully ran as a Labor candidate in the last federal election, said the project had been “offered $1.4bn” under the federal program for its construction costs.
“My understanding is that the money is still on the table for Stanwell and the project will go ahead despite the state decision,’’ he told The Australian.
A spokesperson for Mr Bowen would not comment on the proposed level of funding but confirmed it was still on offer, if the project went ahead. “It’s a matter of public record that Stanwell was one of six projects on the shortlist for Hydrogen Headstart,’’ the spokesperson said.
“If that project is not proceeding, money won’t be awarded.”
In a statement, Mr Bowen said he supported the project and then attempted to link the LNP state government decision to Peter Dutton.
“The threat to withdraw funding is surprising and disappointing given this project creates nearly 9000 jobs and was expected to generate $8.9bn for the local economy,’’ he said.
“Peter Dutton may want to cheer on job losses, but the Albanese government is firmly committed to seeing Gladstone’s economy grow and creating new jobs for the region.
“Green hydrogen plays to Australia’s unique strengths and we’re unapologetic about pursuing an industry that is recognised as having an important role in the future of manufacturing and energy in Australia, and globally.
“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.”
Queensland Deputy Premier Jarrod Bleijie said the former Labor government had not allocated funds for the project.
“We took a policy to the election that we were going to respect Queensland taxpayers’ money,” he said. “The former Labor government had asked Stanwell to invest $1bn. It wasn’t budgeted, by the way, and Stanwell have come to the government wanting more money on top of the billion dollars that was unfunded, unbudgeted.
“That project will not proceed under the new government.”
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