The Government-owned generator company said it had signed a 15-year, 380MW power purchase agreement with ACCIONA Energía to purchase 100 per cent of the output from its planned Aldoga Solar Farm, 20 km north-west of Gladstone.

The $500 million Aldoga Solar Farm would be built within the Gladstone State Development Area and adjacent to the proposed hydrogen production facility site for the CQ-H2 project which is planned to start commercial operations in 2028.

The Aldoga solar farm is expected to start construction this financial year.

Front end engineering and design studies for the CQ-H2 project have already started with a commitment of $117 million from government and consortium partners. So far, it is the largest investment in an Australian renewable hydrogen project.

Energy Minister Mick de Brenni said the CQ-H2 project was one step closer to unlocking the potential of Queensland’s renewable energy resources.

Stanwell chief executive Michael O’Rourke said the GOC had an ambitious strategy and a key component was to drive the development of Queensland’s hydrogen industry and the Acciona deal was a key milestone.

The CQ-H2 project involves a hydrogen production facility at Aldoga, near Gladstone, the development of a hydrogen pipeline, supply of hydrogen to an ammonia production facility, and the development of a hydrogen liquefaction facility and ship loading facilities at Gladstone Port.

The CQ-H2 project aims to deliver renewable hydrogen via its different carriers, to Japan and Singapore, as well as supplying large domestic customers in central Queensland.

The consortium in the CQ-H2 project are Iwatani Corporation, Kansai Electric Power Company, Marubeni, Keppel Infrastructure and Stanwell Corporation.