Singapore's Keppel enters 2.5-GW Queensland green H2 project

Singaporean conglomerate Keppel Corp Ltd (SGX:BN4) today said it has joined an up-to-2.5-GW project to produce renewable hydrogen in Australia and unveiled a pact facilitating a portion of the future supply for a local green ammonia facility.

Keppel has become part of the Central Queensland hydrogen (CQ-H2) project consortium, which is developing a production site and other related infrastructure to supply green hydrogen to the local market and export to Japan and Singapore. The partnership comprises Queensland government-owned Stanwell Corp, as well as Japan's Iwatani Corp, Kansai Electric Power and Marubeni Corp.

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The proposed site is due to start producing green hydrogen on a commercial scale in 2028. With a Front End Engineering Design (FEED) study already initiated, a final investment decision (FID) on the project is due to be taken in late 2024.

Additionally, Keppel has signed a Memorandum of Understanding (MOU) with Incitec Pivot Ltd (IPL) to explore the development of an industrial-scale green ammonia production facility in Gladstone, Queensland, along with other potential partners. The Singaporean group explained that its participation in the CQ-H2 project will provide a reliable source of green hydrogen that will be used in the ammonia production process. The facility’s output of around 850,000 tonnes per year will be supplied to domestic and overseas markets.

“Through Keppel’s involvement in the CQ-H2 consortium, and our partnership with Incitec Pivot, we are redoubling our efforts in making green hydrogen and ammonia reliable and commercially viable energy sources,” said Cindy Lim, CEO of Keppel’s Infrastructure Division.