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Worley awarded FEED contract for Queensland’s largest renewable hydrogen project

Worley announced in early September that it has been awarded front-end engineering and design (FEED) work for the Central Queensland Hydrogen (CQ-H2) Project.

The project—led by Stanwell Corporation Ltd. and its consortium members Iwatani Corp., Kansai Electric Power Co., Marubeni and Keppel Infrastructure—is the largest investment in an Australian renewable hydrogen project to date.

It also ranks in the global top 10 hydrogen projects at the pre-FID (final investment decision) stage.

Artist impression of the electrolyzer plant (Source: Worley)

The project initially plans to install up to 640 megawatts of electrolyzers and produce up to 200 metric tons of gaseous renewable hydrogen per day with offtakers purchasing the gas to convert to renewable ammonia or liquified hydrogen.

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

Worley said it previously worked on the project as a technical advisor during the initial feasibility study phase.

Now, its scope is to supply the FEED study for the hydrogen production facility and hydrogen transfer facility, along with the pre-FEED study for the hydrogen liquefaction facility.

The project is backed by funding from all consortium members, the Australian Renewable Energy Agency (ARENA), and the Queensland government’s Queensland Renewable Energy and Hydrogen Jobs Fund.

At its peak, the project is expected to support more than 8,900 new jobs, deliver AUD$17.2 billion (USD$11 billion) in hydrogen exports, and add AUD$12.4 billion (USD$8 billion) to Queensland’s gross state product over its 30-year life.

Commercial operations are expected to start in 2028.

If successful, the project will ramp up in future phases to full-scale operations of approximately 2,240 megawatts of electrolyzer capacity, capable of producing 800 tons per day of gaseous renewable hydrogen by 2031.

“The advancement of this important hydrogen project is great news for Central Queensland, where the project could create thousands of jobs and deliver billions of dollars in economic benefit,” said Stanwell CEO Michael O’Rourke at the FEED-investment signing.

Gillian Cagney, president of Worley’s Australia and New Zealand business, added, “The Central Queensland Hydrogen Project is a landmark project, set to propel Stanwell’s operations, the Gladstone region, and Queensland as a whole into a leading exporter of green energy. Our work with Stanwell to date demonstrates our unique ability to support projects right from early concept studies into front-end design, and we are looking to continue that support post-FID into the execution stage. The project is aligned with our purpose of delivering a more sustainable world and is set to play a pivotal role in Australia’s decarbonization journey.”

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