Green hydrogen is a truly exciting opportunity for Queensland.
The technology holds great promise for a variety of industry sectors, not least because of the economics of its use compared to existing fuels.
Hydrogen has been heralded as a “future energy” source for industries that have traditionally presented a greater challenge when it comes to decarbonisation.
These industries include the heavy transport operators that move goods across our vast land and provide the vital connections to our cities and ports.
With Australia’s great distances and reliance on our truck fleet to move goods, it is no surprise that heavy transport – like electricity – represents a real opportunity for our nascent hydrogen industry.
According to recent studies, the use of hydrogen to fuel high utilisation heavy transport has the best potential to achieving cost parity compared to petroleum fuel sources currently in use.
In other words, the switch to hydrogen does not necessarily come with the same “cost of change” as other potential energy sources.
As a future-focused and diversified energy business and a leader in delivering new energy solutions, CS Energy is making significant investments into research and development of hydrogen and focussing on the domestic heavy transport and haulage market as a valuable opportunity for Australia.
As part of our commitment to delivering the Energy of Tomorrow, CS Energy is also investigating technology and location options for modular hydrogen refuelling stations in the South East Queensland and Western Downs freight corridor.
There’s never been a more exciting time to be in the Australian energy business, according to CS Energy Retail Account Manager, Selena Waterford.
In 2021 Selena joined CS Energy’s Retail Team, which provides tailored energy solutions for large organisations. She says customers are more aware than ever of the need for competitive, efficient and sustainable sources of power, and this is driving innovation and creativity in the energy industry.
“Business retail customers are becoming increasingly savvier and know what they want in a retail agreement,” Selena says.
“Gone are the days when price alone reigned supreme. Customers want a retailer who can align energy procurement alongside their corporate strategy goals of ‘Net Zero Emissions’ or 100% renewables. They also want a retailer who can provide exceptional customer service and takes the time to understand their business and needs.”
Selena believes there is a huge opportunity for Australia to be a leader in the global transition to “energy of the future”, recognising it is a journey from traditional sources to more tailored sustainable and innovative solutions.
“It is interesting that customers are leading this transition, driven by their own shareholder and stakeholder expectations. I really enjoy talking to customers about their energy needs, and how they can incorporate renewable energy in ways that balance cost and reliability with a focus on sustainability.”
Selena is excited about the future, and the opportunity to be part of a global shift towards renewable energy.
“The energy industry is continually evolving and that is what makes it exciting for me. While no one knows for sure what the energy landscape will look like in a decade’s time, it will surely involve a greater mix of renewables as Australia transitions to using more renewable energy.
“Being a part of this shift and helping retail customers achieve their sustainability goals by thinking outside the box is both challenging and rewarding.”
Emma Roberts is the Head of Future Energy at CSE. In this article she writes about the growth of hydrogen as a new energy source in Queensland.
Hydrogen is emerging as one of the most exciting prospects for meeting the world’s future energy needs.
Queensland has been recognised as an ideal location for renewable hydrogen projects because we have plenty of sunshine, a highly skilled workforce and well-established ports to export hydrogen overseas.
Both the Australian Government and various state governments have recognised the enormous potential of hydrogen with strategies and funding to expand the hydrogen industry.
Here in Queensland, we have Australia’s first dedicated Minister for hydrogen, with Mick de Brenni appointed as the state’s Minister for Energy, Renewables and Hydrogen in 2020. Mr de Brenni is also one of CS Energy’s shareholding Ministers.
As CS Energy works to diversify our portfolio, we have invested in two hydrogen projects to assess future commercial opportunities for the production and use of renewable hydrogen.
In 2019 we provided $500,000 towards QUT’s multi-party hydrogen R&D project at Redlands. Then in January of this year, we announced that we had partnered with IHI Corporation Japan to assess the feasibility of establishing a renewable hydrogen demonstration plant next to Kogan Creek Power Station.
It’s an exciting time to be working in the energy industry, but for people outside of the sector it can be confusing understanding why hydrogen is attracting so much attention and the difference between the various colours of hydrogen.
What is hydrogen and how is it used?
Hydrogen can be produced in liquid or gas form and is used around the world as a raw material for industrial processes. Hydrogen can also be used both as a fuel for transport and as a way to store electricity.
Hydrogen is also described in different colours: green, blue, grey and brown. These labels are based on how the hydrogen was produced. Brown hydrogen is made using coal, grey hydrogen uses gas and blue hydrogen is produced using gas and carbon capture and storage to reduce emissions.
At CS Energy, we’re interested in green hydrogen, which is produced using renewable energy.
The Kogan Hydrogen Demonstration Project
The proposed Kogan Hydrogen Demonstration Plant will use a combination of solar energy and batteries to power an electrolyser that will split water (H2O) into hydrogen.
While it will be located next to Kogan Creek Power Station, the demonstration plant’s hydrogen electrolyser will only be powered by behind-the-meter solar energy. This will make it one of the few truly ‘green hydrogen’ projects in Australia.
The project will not rely on the purchase of green certificates to ‘wash’ the hydrogen, which is a feature of many other hydrogen projects. We believe this a key differentiator as solar electrons will run the electrolyser, charge the battery, and where surplus, be dispatched into the National Electricity Market.
This graphic illustrates how the Kogan Hydrogen Demonstration Project would produce green hydrogen.
CS Energy is currently working with IHI Corporation on our joint feasibility study into the demonstration plant. We’re exploring the optimum technology configuration, doing detailed design and costing and assessing the availability of government funding.
Most importantly, we are investigating potential markets for the green hydrogen product in the transport, mining and industrial sectors.
Next steps
We expect to complete the feasibility study in the first half of this year. The decision to proceed with the demonstration plant will be at the discretion of the CS Energy Board and our owners the Queensland Government.
If the demonstration plant proceeds and is successful, it will provide the platform for modular expandability to a commercial-scale facility.
Did you know that water is crucial in the process of generating electricity? We have a number of sustainable and efficient water management practices in place, including using a combination of recycled, raw and town water in our operations.
Kogan Creek Power Station, near Chinchilla on Queensland’s Western Downs, is our most water efficient plant.
Unlike many traditional coal-fired power stations, Kogan uses dry cooling technology, which uses 95% less water.
CS Energy employee walking on the top level of the air-cooled condenser
Kogan has an air-cooled condenser that uses large fans to cool and condense exhaust steam after it has left the turbine, so it can be reused again. The limited water the power station does use is sourced from local bores and surface water run-off that’s been collected in dams.
An onsite water clarification plant was introduced in 2016 and is used to recycle stormwater for use in plant operations. This has led to a 20% annual reduction in bore water use. In instances where high quality water is required, Kogan Creek Power Station can treat additional sources of water for use in the boiler, or provide a back-up water source in the event of drought or a bore failure.
Every year we welcome engineering students from local universities into the CS Energy summer undergraduate program.
Rani Stephensen was one of the successful candidates. Rani is studying a double degree in electrical engineering and business management and is interested in renewable energy and the innovations emerging in response to changing energy demands and community expectations.
We asked Rani some questions about her time in CS Energy’s summer undergraduate program and here’s what she said.
CSE undergraduate Rani Stephensen
What most interested you about the CS Energy vacation program?
I have always had a keen interest in energy and the sector more broadly. With the current transition to renewables, I think energy is one of the most interesting fields to work in. It’s such an exciting time to see the new innovations and technologies being developed to respond to changing energy demands worldwide.
I embraced the opportunity to gain industry knowledge at CS Energy and work with such a skilled, knowledgeable team.
What have been some of the highlights since starting the program?
A key highlight was visiting Sulzer to see the electric feed pump motor testing. During our visit we were given a tour of the facilities and shown how they manufacture their motors.
In February we also visited Kogan Creek Power Station for a site tour. This was invaluable and really helped solidify everything I had worked on during the program.
I have also loved working with the team at CS Energy. I got to work with experts across a variety of fields who were all keen to help me in any way possible. I have been introduced to so many different ideas and experiences which I never would have seen otherwise.
How did you hear about the program?
I was fortunate enough to have the QUT Leaning Potential Fund Scholarship with CS Energy in 2019. This meant I had a strong connection with the company when the opportunity arose.
What inspired you to choose a career in engineering?
I’ve always had an interest in maths and look for any opportunity to learn and develop new skills. I also knew I liked being hands on and wanted to pursue a career that complemented this.
It wasn’t until I participated in my local university’s engineering programs in high school that I discovered my love for engineering and knew I had found my true passion.
Where do you see yourself in five years?
In five years’, I will have successfully completed my double degree in electrical engineering and business management.
I want to be working in industry on a range of projects, progressing my career and building on everything I learnt at university and my undergraduate placements.
Every year we welcome engineering students from local universities into the CS Energy summer undergraduate program.
Yousif Al-Patti was one of the successful candidates. Yousif is currently studying a Bachelor of Engineering (Honours) (Software Engineering) and Master of Engineering at UQ.
We asked Yousif some questions about his time in CS Energy’s summer undergraduate program and here’s what he said.
CSE undergraduate Yousif Al-Patti
What most interested you about the CS Energy summer undergraduate program? The thing that interested me most about the CS Energy program was the ability to engage and work with different teams in multiple departments, while receiving the help and support from the team so I could achieve my desired learning outcomes.
What have been some of the highlights since starting the program? I’ve really loved experiencing how the program explores a wide range of technologies and services that we as graduates get exposure to every day. It’s so valuable to interact with services that help shape the company’s infrastructure. I’ve also enjoyed learning more about the underlying mechanics of the company, from power generation to data analysis.
How did you hear about the program? I was introduced to the program by Career Seekers, an organisation that helps students from refugee backgrounds to kick-start their career.
What inspired you to choose a career in engineering? Engineering is a field that puts no limit to learning and development. I am someone who is committed to always learning and enhancing my skills, so I thought it would be the ideal career path for me. When working in engineering, you’re constantly introduced to challenges that require lateral, creative thinking, which is something I have always been passionate about and wanted to hone my skills further.
Where do you see yourself in five years? In five years, I see myself using the skills and technical knowledge that I have gained from the CS Energy vacation program in a role involving data analysis and software development, and applying these systems to achieve business goals.
Every year we welcome engineering students from local universities into the CS Energy summer undergraduate program.
Qasim Khan Baba was one of five successful applicants to this year’s cohort. This is what Qasim had to say about his time in the program.
Qasim Khan Baba – CSE Undergraduate
What most interested you about the CS Energy summer undergraduate program
Coming from Afghanistan where we didn’t have electricity at all until recently, and even now only few nights per week, I find it very rewarding to work in a Queensland company that provides a huge section of the state’s power.
I was also curious to learn how a power generator company operates and how software engineers contribute to CS Energy and utility companies in general.
What have been some of the highlights since starting the program?
The main highlight has been the first-hand experience that comes with being in a professional environment and in a field that I want to pursue a career in.
It’s been invaluable seeing how everything that I have learned at university is being applied to real applications that impact real lives and people in Queensland. This has really helped me to appreciate my education more and has inspired me to strive to continually learn more and really apply myself in my degree.
How did you hear about the program?
I heard about the CS Energy program through Career Seekers, which is an organisation that helps students from refugee backgrounds to kick-start their career.
What inspired you to choose a career in engineering?
Coming from a country that has been at war for many decades now and seeing how technology has not only changed lives in developed countries but also countries like mine, was the reason I decided to major in software engineering at university. Software engineering is a field that already has and will continue to revolutionise our lives – from the health sector to transportation and to power generation.
People in less fortunate places have also benefited from the contributions of this field due to its fast delivery and easier accessibility.
All these factors made me want to be a part of this positive change by contributing my knowledge and expertise.
Where do you see yourself in five years?
In five years, I want to be working as a software engineer in a role that is equally enjoyable and challenging, a job where I am continually growing my skills and learning every day.
I would also love a job where I contribute to the company in other areas such as cyber security, AI or the Cloud.
We recently welcomed five undergraduate engineers into CS Energy as part of our summer undergraduate program.
Majella Cassidy has been in the program since 2019 so we asked her some questions about her experience. Here’s what she shared.
CSE undergraduate Majella Cassidy
What most interested you about the CS Energy vacation program?
I’m a naturally curious person and I love solving problems! When researching graduate programs, I was excited to see what CS Energy was doing in the energy generation space and how they were navigating the constantly changing energy market and transition to renewables. I knew there would be opportunities to hone my problem solving and analytical skills in a professional setting rather than in the classroom.
What have been some of the highlights since starting the program?
I’ve had great exposure working in different teams on a variety of multi-disciplinary projects. This has allowed me to get a real taste of all that CS Energy has to offer and deepen my understanding of CS’s power stations.
There have been many ‘lightbulb moments’ where things just click and I understand a specific process or part of a plant clearly. Nothing beats that feeling.
The best part has undoubtedly been putting the theory we learn at uni into practical use. It’s great because it helps me stay motivated throughout the semester, knowing that I’ll be able to implement the theory I’m learning to solve real world problems.
How did you hear about the program?
I’m an API (Australian Power Institute) bursary holder and was given the opportunity through them to interview for the position at CS Energy. I’m so grateful to have grown my skills significantly in this program and to work with some of the most experienced and passionate engineers in this field.
What inspired you to choose a career in engineering?
Put simply, it’s because energy generation is an essential service that our lives almost completely rely on. I had no idea what I wanted to do when I left high school, all I knew was I loved maths so people recommended giving engineering a go. And I’m so glad I did!
Where do you see yourself in five years?
To be honest, I don’t exactly know. After finishing my bachelor’s degree, I want to do a graduate program as a mechanical engineer. All I hope is for a fulfilling and challenging career where I can put my passion of problem solving to good use (and maybe a border collie somewhere in the mix!).
CS Energy will defend a class action lodged by a law firm and funded by corporate backers.
CS Energy Chief Executive Officer Andrew Bills said CS Energy rejected the claims being made and said the company operated in strict accordance with, and took very seriously, its obligations with all rules and regulations in the National Electricity Market.
“CS Energy is strongly committed to complying with all market rules and regulations and we’ve dedicated substantial resources to ensuring we meet our obligations,” Mr Bills said.
“Our bidding activity is regulated under the National Electricity Law and the National Electricity Rules by the Australian Energy Regulator (AER).
“We have one of the most highly regulated and competitive electricity markets in the world, with prices set every five minutes.”
The AER investigates and publicly reports on the causes of all high-price events in the wholesale electricity market.
Previous investigations have found high wholesale prices to be due to a wide range of influencing factors, including extreme weather fluctuations.
Queenslanders should question who will benefit from a claim like this – is it Queenslanders or a corporate litigation funder whose main interest is making a return on their investment in class actions?
As a Queensland-based and publicly owned Queensland business, the proposed class action is pursuing the revenues that we return to the state which are used to fund important services for all Queenslanders.
Mr Bills said CS Energy owned two of the most efficient coal-fired power stations in the country, providing affordable and reliable baseload power to millions of Queensland businesses and residents.
“We have a proud track record of delivering increased competition and savings for electricity consumers in South East Queensland through our joint venture with Alinta Energy, as reported by the Australian Energy Market Commission.”
Earlier this month we published our annual Energy Charter Disclosure report, which outlines the work we’ve been doing to ensure we are as consumer-centric as possible, in line with the Australian Energy Charter.
This business-led charter, which counts 19 Australian energy companies as members, guides our progress toward becoming a more community and consumer-focused business, and this year’s report outlines steps we’ve taken to better understand our customers’ needs. We are proud to have either delivered on, or made progress against all areas of improvement we identified in our 2019 report.
We measured this by conducting our first independent customer survey and we’re already taking steps to give our customers the innovative energy solutions they’re asking for, such as electric vehicle charging stations and improved billing and information systems.
We are proud to have doubled the number of commercial and industrial retail customers we serve across Queensland while recording our safest year on record. We are committed to continuing to safely and efficiently provide best-in-class innovation and services as we become a diversified energy company.
This is a long-term commitment for CS Energy and is being driven from our senior levels of management. We look forward to growing even closer to our customers and stakeholders in the coming years.
