Queensland’s largest state-run energy company has started early work on a small scale gas project in the state’s central region.
Stanwell Corporation has started a feasibility study into building a Hydrogen Demonstration Plant southwest of Rockhampton.
The work will investigate the technical and economic feasibility of using Stanwell’s existing power station to install a hydrogen electrolysis technology, which is capable of generating at least 10 megawatts. If successful, it would become the nation’s largest of its kind.
The power station is hoped to show that hydrogen production can be commercially and ecologically viable through using hydrogen electrolysers as a complimentary power source.
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It is also expected to help increase the reliability of energy through participating in both the Frequency Control Ancillary Services and Fast Frequency Response markets.
The Australian Renewable Energy Agency (ARENA) has granted $1.25 million in funding so far out of the $5 million needed to complete the study. The feasibility study is expected to be complete before Christmas.
“The construction and operation of a utility scale electrolyser is important to demonstrate the costs associated with producing renewable hydrogen at scale,” ARENA CEO Darren Miller said in a public statement.
“If feasible, this could help underpin future commercial scale deployments leveraging existing network infrastructure at other power stations and play a role in driving down the cost of domestic hydrogen production.”