Queensland companies CS Energy and Senex Energy have signed a deal to develop the Kogan Renewable Hydrogen Demonstration Plant to produce green hydrogen to fuel the latest stop on the east coast Hydrogen Superhighway.

Queensland Minister for Energy, Renewables and Hydrogen, Mick de Brenni, said publicly-owned CS Energy and natural gas producer Senex have agreed to form a joint venture (JV) to develop the Kogan Renewable Hydrogen Demonstration Plant near Chinchilla.

Mr de Brenni said the Queensland Government was creating more jobs in more industries, backing CS Energy with $28.9 million for the demonstration plant and a refueller network.

“Green hydrogen is key to diversifying our energy sector, building on our long-term energy know-how in regional Queensland and attracting significant international investment in job creating heavy manufacturing,” Mr de Brenni said.

“This green hydrogen will be used in the latest stop on our Hydrogen Superhighway established with New South Wales and Victoria and help develop Australia’s energy independence via the transport sector.

“CS Energy and Senex Energy are both Queensland companies with complementary skills and experience and this means we can bring their more than 60 years of collective experience together to stake a claim in the growing hydrogen sector.

“Today’s announcement will contribute to the success of the Kogan demonstration plant and support Queensland’s ambitions to become a hydrogen and renewable energy superpower.”

Under the joint venture agreement, CS Energy will operate and hold 75 per cent equity in the plant, while Senex Energy will hold 25 per cent equity in the plant.

CS Energy CEO, Andrew Bills, said both companies recognised the enormous potential of renewable hydrogen to contribute to a low-carbon future in Australia.

“Senex Energy’s experience in the gas sector will be invaluable during the demonstration and as we evaluate future opportunities to increase renewable hydrogen production to commercial scale.

“CS Energy is excited to welcome Senex Energy as our partner at this key point in the project as we move to the construction phase later this year.

“There is a strong strategic alignment between CS Energy and Senex Energy around the opportunities the energy transformation will bring, enabling us to explore partnerships on other projects.”

Senex Energy Chief Executive Officer, Ian Davies, said the company’s participation in the project underlined its commitment to the supply of reliable, affordable and sustainable energy that is vital to the economy and jobs.

“To ensure Queensland’s and Australia’s energy security, and reach net zero targets, we need all forms of energy to work together. 

“The natural gas sector is the ideal partner for development of a renewable hydrogen industry and that’s why we’re investing in this project,” Mr Davies said.

“Producing new sources of energy requires strong cooperation between all stakeholders and Senex Energy looks forward to working with CS Energy and the Queensland Government to develop the capabilities required for the future energy system.” 

The Kogan Renewable Hydrogen Demonstration Plant is a green hydrogen production facility that will be built next to CS Energy’s Kogan Creek Power Station.

The project will include the co-location of a solar farm, battery, hydrogen electrolyser, hydrogen fuel cell, hydrogen storage and out loading facility.

IHI Engineering Australia (a subsidiary of IHI Corporation Japan) has been appointed to construct the plant, with work due to start on site in September 2022.

For more information on the project can be found here

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