The federal government is taking steps toward a new hydrogen power source in central Queensland as part of its ongoing goal to shore up energy supplies and investment in renewable sources.

A $1.25 million feasibility study will be announced by the federal government on Wednesday for a small-scale test station, alongside the Stanwell power plant near Rockhampton.

Australian Renewable Energy Agency CEO Darren Miller told The Courier Mail on Wednesday the decision could help pave the way for Australia to become a leader in renewable energy exports.

“This will create opportunities across the domestic economy and help to position Australia to become a major renewable energy exporter,” Mr Miller said.

If successful, the test plant could result in further hydrogen plants around Australia, he added,

Earlier this week, a new nationwide clean energy research program was announced, with the aim of cutting Australian’s power bills by a quarter by 2034.

The federal government is throwing $70 million into a research centre that will work nationwide through universities and businesses across Australia, developing clean energy and storage technologies.

It will also draw in $280 million in funding from industry to go towards the research, hoping to pump $8 billion into the economy by 2034.

Energy Minister Angus Taylor also revealed the government would be releasing a consultation paper for business investment in renewables in coming weeks.