Hydrogen project collapse a major blow for Gladstone's economic future

The Queensland Government's shift away from renewable energy is already playing out to put jobs at risk in a major blow to the future of Gladstone’s economy, according to the Queensland Conservation Council (QCC).

After the State Government withdrew support for the CQ-H2 hydrogen project in February, it has officially collapsed with Japanese consortium partners pulling out and closing Queensland offices. This leaves the Queensland Government with no energy plan to drive new energy investment to secure the region’s future.

QCC’s Regional Environmental Advocate for Gladstone, Emma Smith, said

Gladstone has all the right ingredients to secure a prosperous future in renewable hydrogen production and clean manufacturing, but we’re seeing the State Government’s policy uncertainty squander the opportunity.

New and existing industry are calling out for firmed renewable energy to underpin their operations. Rio Tinto has consistently said they need to repower their Gladstone aluminium operations with renewable energy backed by storage to be globally competitive.

Companies are looking at producing green iron in Gladstone using renewable hydrogen. Those plans can’t feasibly proceed without a local supply of hydrogen.

The State Government supported the development of the industries that currently keep Gladstone alive, particularly aluminium smelting through subsidised electricity and the gas industry through a range of incentives and tax breaks. Now they need to provide that certainty to new industries so Gladstone can be set up for the future. But the continued attacks on renewable energy and clean industry are jeopardising regional jobs and derailing new industries setting up shop in Central Queensland.

Responsible governments look beyond their term of government and plan for the future. Politicians that are trying to derail investment in renewable energy and new clean manufacturing industries are sabotaging the future of regional Queensland communities.

Through Stanwell, CQ-H2 had been doing a lot of ground work to ensure that their operations in Gladstone could utilise the skills and industry already in our city, and be a welcome addition to our export potential. It is a shame to see that work unravel due to investor uncertainty.

This discussion is not just about hydrogen, it's about the wider settings that allow new industries to establish in the regions. It's a test to see if the right conditions are in place to steer regional Queensland away from the finite resource of fossil fuels.

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