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Power supply deal secured with Aldoga Solar Farm to drive Central Queensland hydrogen industry: Acciona Energia

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Australian Rural & Regional News has asked a number of questions of Acciona Energia and Stanwell Corporation, set out below the release. The companies’ response will be included here once received.

ACCIONA Energia, Media Release, 26 October 2023

  • Publicly owned energy company Stanwell Corporation has signed a Power Purchase Agreement with ACCIONA Energía to purchase 100 per cent of the output from its Aldoga Solar Farm.
  • Stanwell plans to supply output from the Aldoga Solar Farm PPA to the proposed Central Queensland Hydrogen (CQ-H2) Project, currently undergoing a Front End Engineering Design (FEED) study.
  • The CQ-H2 Project is developing Queensland’s largest renewable hydrogen project and aims to deliver renewable hydrogen via its different carriers, to Japan and Singapore, as well as supplying large domestic customers in Central Queensland.

Publicly owned energy company Stanwell Corporation has signed a 15-year, 380-Megawatt Power Purchase Agreement (PPA) with ACCIONA Energía to purchase 100 per cent of the output from its planned Aldoga Solar Farm, 20 km north-west of Gladstone.

The Aldoga Solar Farm is strategically situated within the Gladstone State Development Area (SDA), which was established by the Coordinator General, and on land developed by the Queensland Government’s Economic Development Queensland (EDQ).

This innovative solar farm stands as a significant milestone in the Queensland Government’s commitment to renewable energy targets, playing a pivotal role in harnessing clean and sustainable power sources to achieve the region’s renewable energy goals.

This development exemplifies Queensland’s dedication to fostering clean energy initiatives, as the Aldoga Solar Farm is just one facet of Queensland’s growing network of clean energy hubs. These burgeoning hubs, located within our SDAs, have been crafted to provide an optimal environment for businesses to establish and flourish within the realm of clean energy. These hubs not only ensure seamless integration and operation for new-generation clean energy businesses but also come with comprehensive and continuous support from EDQ, underscoring the commitment to nurturing and sustaining the clean energy landscape.

Stanwell plans to supply output from the Aldoga Solar Farm PPA to the proposed Central Queensland Hydrogen (CQ-H2) Project. The Aldoga Solar Farm will be located adjacent to the proposed hydrogen production facility site for the CQ-H2 Project.

The CQ-H2 Project is undertaking a Front End Engineering Design (FEED) study, with a commitment of AU$117 million from government and consortium partners.

The FEED study represents the largest investment in an Australian renewable hydrogen project of its kind to date. The CQ-H2 Project commercial operations are planned to commence from 2028.

The Honourable Mick de Brenni, Minister for Energy, Renewables and Hydrogen and Minister for Public Works and Procurement told parliament today:

“In Central Queensland our CQ-H2 project is one step closer to unlocking the great potential of Queensland’s renewable energy resources. As Queensland’s – in fact, Australia’s – largest renewable hydrogen project progressed to this stage, CQ-H2 will deliver Queensland-made green hydrogen to Japan, Singapore and consumers across Australia. This deal today is another massive step forward for jobs, cleaner energy, more exports and cheaper power.”

Quotes attributable to Michael O’Rourke, CEO Stanwell

“Stanwell has set out an ambitious strategy for what we will achieve as a business between now and 2035 and a key component of our strategy is to drive the development of Queensland’s hydrogen industry. Our agreement with ACCIONA to secure the output of the Aldoga Solar Farm is a key milestone for us, as the Central Queensland Hydrogen Project undertakes its Front End Engineering Design Study and progresses to Final Investment Decision.”

Quotes attributable to ACCIONA Energía Managing Director Brett Wickham:

“Queensland is one of ACCIONA Energia’s preferred destinations for investment. In the global competition for energy projects Queensland stands tall with a highly skilled workforce, good regulatory processes and held together by a well thought out Energy and Jobs Plan.”

“Queensland’s energy transition is well underway. With 100 per cent of the power from ACCIONA Energia’s Aldoga Solar Farm supplied to Stanwell we’re helping to reduce power prices and carbon emissions across the sunshine state.”

About Stanwell Corporation Limited

Stanwell is a major provider of electricity and energy solutions to Queensland, the National Electricity Market and large energy users throughout Australia. Stanwell is creating a new, lower carbon generation portfolio that’s complemented by energy storage and driving the development of a renewable hydrogen export industry in Central Queensland.

About the Central Queensland Hydrogen (CQ-H2) project

The CQ-H2 Project involves the development of a Hydrogen Production Facility at Aldoga, near Gladstone, the development of a Hydrogen Transfer Facility (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. Commercial operations are planned to commence from 2028. The CQ-H2 Project is undertaking its Front End Engineering Design (FEED) study for the project, with a commitment of AU$117 million from government and consortium partners. The consortium comprises Iwatani Corporation, Kansai Electric Power Company, Marubeni, Keppel Infrastructure and Stanwell Corporation.

About ACCIONA Energía

ACCIONA Energía is the largest 100 per cent renewable energy company with no fossil legacy in the world. It has 12.27GW of renewable energy and commercial operations in 20 countries. With 30 years of experience, ACCIONA Energía offers a complete portfolio of tailor-made energy solutions for its corporate and institutional clients to meet their decarbonization goals. ACCIONA Energía is committed to the highest environmental, social and corporate governance (ESG) standards. ACCIONA S.A., a leading global company in the provision of regenerative solutions for a decarbonized economy, is the reference shareholder of ACCIONA Energía. www.acciona-energia.com

Questions from Australian Rural & Regional News

Australian Rural & Regional News has asked the following questions of ACCIONA Energia and Stanwell Corporation. The companies’ response will be included here once received.

  • What is the status of the FEED study, and when do you anticipate that it will be completed?
  • Is it expected that the solar energy produced will supply all the energy needs for the production of the hydrogen? If not, what is the expected deficit?
  • What are the water needs for the production of the hydrogen and where is it anticipated that this will come from?
  • What environmental studies have been undertaken?
  • What community consultation has taken place?
  • How many adjoining landowners are there to the site? What is their view of the project?
  • What compensation will be available to adjoining landowners or local communities?
  • What is the anticipated impact on local roads during the construction phase? (Eg increased traffic, repair and maintenance required)
  • Of the projected construction workforce of 350, how many of these will be local (as opposed to outside contractors)?
  • How many will be permanent roles?
  • Where will outside contractors be housed?
  • The project is anticipated to have a 30 year lifespan.  This seems a comparatively short lifespan for a piece of energy infrastructure?
  • What arrangements are there for remediation of the landscape, both after the initial construction phase and at the end of the project?
  • What arrangements are there for the removal of the infrastructure at the end of the project?

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