The Redlands will play a part in important hydrogen research to build green jobs of the future.
The state government is looking at ways to build hydrogen jobs of the future, and the Redlands is involved in the important research.
The government is investing a further $500,000 for Queensland University of Technology's Redlands research centre at Cleveland.
Government-owned CS Energy, operator of Callide and Kogan Creek power stations, has invested $500,000 for the $8.4 million research and development project headed by QUT, bringing total state funding to $750,000.
Redlands MP Kim Richards hailed the opportunity.
"I am delighted that part of the research needed to make that possible is being conducted here in Redlands," Ms Richards said.
CS Energy chief executive Andrew Bills said the pilot plant project aligned with CS Energy's long-term business objectives.
"As the imperative for grid stability and fast-start technology options gather momentum, the potential for hydrogen storage technology cannot be overstated," Mr Bills said.
"CS Energy decided to become involved in this project so we could assess future commercial opportunities for the production and use of renewable hydrogen in the energy industry."
The project will establish a renewable hydrogen plant at the Queensland government's Redlands Research Facility and will use locally produced solar energy to extract hydrogen from non-treated drinking water.
Queensland Government strategic hydrogen advisor Professor Ian Mackinnon from QUT's Institute for Future Environments is leading the project.
Professor Mackinnon said hydrogen had the potential to be a major clean energy carrier of the future.
"Natural resources, such as high solar irradiation, available land, accessible seawaters and brines, an extensive coastline and diverse biomass are abundant and key requirements for a globally competitive industry in green hydrogen," he said.
"Queensland has the infrastructure and the resources to be a major player in this emerging market."
The project has also received more than $3 million in financial support from the Australian Renewable Energy Agency (ARENA) with other project partners including QUT, Sumitomo Electric Industries, Energy Developments Limited, Swinburne University of Technology, Griffith University and The University of Tokyo.