CS Energy, which owns the coal-fired Kogan Creek and Callide power stations as well as a coal mine said it had signed a Memorandum of Understanding with IHI Corporation Japan for a joint feasibility study into the Kogan Hydrogen demonstration plant which could include a solar farm, battery, hydrogen electrolyser and a hydrogen fuel cell.

The two corporates would assess the availability of external funding from all levels of government and investigate potential markets in Australia and internationally for a green hydrogen product offtake.

Green hydrogen uses renewable energy as the source of electricity used to make hydrogen. The only waste product would be water.

IHI has also previously signed a deal with Woodside to investigate the export of hydrogen to Japan, a country that has tied much of its economic future to hydrogen and promised to cut its emission by 26 per cent from 2013 levels by 2030.

The Government’s other generator, Stanwell Corporation, has already signed a deal with Japan’s Iwatani Corporation for a potential hydrogen export facility in Gladstone.

CS Energy chief executive Andrew Bills said the demonstration project would focus on the hydrogen electrolyser being only powered by behind-the-meter solar energy, making it one of the few truly ‘green hydrogen’ projects in Australia.

“CS Energy is pursuing this project to ensure we have the technical capability to enter the hydrogen market once it becomes more commercially viable,” Bills said.

“The project will prove up the virtual power plant, production of green hydrogen and use of a battery to facilitate renewables.

“The plant may also be able to provide other services like Frequency Control Ancillary Services, which are important for grid stability, and which will be scoped as part of the joint feasibility study.”

The demonstration project supports CS Energy’s revenue diversification strategy and follows the company’s involvement in QUT’s multi-party hydrogen process research and development project at Redlands.

Acting Premier and Minister for State Development Steven Miles held a meeting of Queensland’s economic Ministers yesterday to discuss the future of hydrogen and hear from the Government;s hydrogen advisor, Professor Ian Mackinnon.

“Renewable hydrogen offers the opportunity to create a new high-tech industry delivering enhanced environmental outcomes and highly skilled jobs,” Miles said.

“Positioning Queensland to benefit from the hydrogen industry is a priority for the Government. That’s why I called a meeting of Ministers today to discuss how we can leverage this new industry.

“Our commitment to develop and expand this industry is part of Queensland’s plan for economic recovery, creating jobs in new industries.”