What’s happened to Australia’s green hydrogen dream? Here are 5 reasons the industry has floundered
Published: July 13, 2025 10.07pm CEST
Australia’s vision of becoming a green hydrogen superpower has stumbled as major projects are cancelled and investment confidence wanes. Despite strong natural resources and early government enthusiasm, the sector faces five key challenges: a steep learning curve for scaling plants, very limited domestic demand, the “chicken-and-egg” dilemma of needing both producers and large users simultaneously, high costs tied to expensive electricity, and political or economic instability that scares off investors. Analysts recommend narrowing subsidies to promising sectors like ammonia and ironmaking, improving policy stability, and rebuilding bipartisan support if Australia is to reach its net-zero ambitions by 2050.
Australia pledges $283 M for green energy project by explosives maker
Energy minister says country among the few nations able to develop green hydrogen industry for export
Saadet Gokce |05.07.2025 – Update : 05.07.2025
The federal government committed AU$432 million to Orica’s Hunter Valley Hydrogen Hub, a project designed to produce 4,700 tons of renewable hydrogen each year using recycled water and a 50 MW electrolyzer powered by renewable electricity. Initially focused on domestic fertilizer and chemical production to replace natural-gas hydrogen, the hub could later export to international markets. Despite earlier delays when a key partner withdrew over cost concerns, the project is now central to Australia’s plan for large-scale hydrogen capacity and a step toward decarbonising heavy industry.
Why is the Green Hydrogen Industry Faltering in Australia?
Published on Aug 11, 2025
Once hailed as a future “green hydrogen capital,” Australia has seen flagship projects stall after a year of regulatory inconsistency and political upheaval. Funding withdrawals by state governments, election-driven rhetoric that framed hydrogen as an expensive “fantasy,” and ongoing high inflation have discouraged investors. Experts note that without coherent long-term policy and reliable state financing, Australia’s decarbonisation plans risk further delays, even though global demand for clean hydrogen continues to grow.
https://www.orfonline.org/expert-speak/why-is-the-green-hydrogen-industry-faltering-in-australia
Australia’s Energys gets green light for hydrogen plant in Victoria
July 15, 2025, by Aida Čučuk
Energys received approval for a green hydrogen production site in Hastings, Victoria, after 18 months of regulatory review. Using a 1 MW proton exchange membrane electrolyzer powered by surplus renewable electricity, the plant will supply hydrogen for industrial uses and transportation, displacing grey hydrogen and reducing emissions. Operated by Coregas, the facility highlights Victoria’s ambition to position itself as a leader in low-carbon industrial energy.
https://www.offshore-energy.biz/australias-energys-gets-green-light-for-hydrogen-plant-in-victoria/
Australia needs to get smarter with green hydrogen
July 30, 2025
Analysts argue that Australia’s subsidies and policies are too scattered, chasing unrealistic export goals while domestic projects struggle. High renewable power prices and slower-than-expected cost declines have already caused BP and Fortescue to cancel projects. Experts urge focusing support on industries that already consume hydrogen, like fertilizer production and emerging green-iron manufacturing, and dramatically lowering renewable energy costs to maintain a competitive edge in the global iron and steel market.
https://ieefa.org/resources/australia-needs-get-smarter-green-hydrogen
Australia’s Revolutionary Hydrogen Powder Is Easier and Cheaper to Use for Clean Energy
By Andy Corbley – Aug 1, 2025
Last year, an Australian R&D team proposed a revolutionary new way to create and transport renewable hydrogen energy. The partnership from Curtin University and Velox Energy Materials devised a circular hydrogen industry consisting of hydrogen generation, the capacity to turn it into a powdered storage form, and the infrastructure to refill the expended powder with new hydrogen.
Researchers from Curtin University and Velox Energy developed a sodium-borohydride powder that stores hydrogen safely and releases it when mixed with water, avoiding the dangers and costs of compressed or liquid hydrogen. Backed by AU$5 million in government funding, the project aims to produce 330,000 tons annually by 2030 and 550,000 tons by 2040. The innovation offers a circular, low-cost export model that could position Australia as a global leader in hydrogen shipping and help other countries meet decarbonisation targets.
BP abandons green hydrogen project in Australia in shift towards oil and gas
by Reuters July 24, 20257:54 AM PDTUpdated July 24, 2025
BP announced it will exit the Australian Renewable Energy Hub, a massive 26 GW wind-solar initiative meant to produce 1.6 million tonnes of green hydrogen annually. Pressured by investors after poor renewable returns, the company is redirecting capital to traditional oil and gas, striking a serious blow to Australia’s renewable export ambitions and highlighting the volatility of corporate commitment to large-scale hydrogen projects.
BP exits 26GW wind, solar and green hydrogen project in Western Australia
By George Heynes July 25, 2025
Confirming its retreat from large renewables, bp will transfer ownership of the 26 GW AREH project to other partners. Once envisioned as a cornerstone of Asia-Pacific green hydrogen exports, the AU$55 billion project had won “Major Project Status,” but regulatory hurdles and bp’s strategic pivot underscore the high risks and long timelines of mega-scale hydrogen investments.
https://www.pv-tech.org/bp-exits-26gw-wind-solar-and-green-hydrogen-project-in-western-australia/
Fortescue Walks Away From Two Flagship Hydrogen Projects After Final Approval
July 24, 2025 at 9:32 AM EDT
Mining giant Fortescue cancelled its Arizona and Gladstone green hydrogen plants despite previously approving funding, citing U.S. policy reversals and global market uncertainty. The abrupt pull-out, including a A$227 million write-down, reflects the fragile economics of hydrogen and the difficulty of maintaining investor confidence amid shifting political landscapes.
10. 550,000,000 kg in powder ― Most futuristic form of hydrogen in history produced in Australia
July 17, 2025
Curtin University’s sodium-borohydride innovation allows hydrogen to be exported as a stable powder that releases gas when in contact with water. Targeting 550,000 tonnes of hydrogen annually by 2040—enough to power 2.5 million homes—this method is cheaper and safer than conventional storage and could make Australia a pivotal supplier to nations like Germany, Japan, and South Korea seeking zero-emission fuels.
https://www.ecoticias.com/en/most-futuristic-form-hydrogen-australia/17882
Sparc Hydrogen to Commission Green Hydrogen Pilot Plant in South Australia This July
By Catherine Lafaurie June 25, 2025 at 12:22 PM EDT
Sparc Technologies is set to commission the world’s first commercial-scale photocatalytic water-splitting pilot plant at the University of Adelaide’s Roseworthy Campus. Using only sunlight, water and a catalyst—without electrolysers—it promises low-cost, modular hydrogen production. Partners include Fortescue and Japan’s Shinshu University, highlighting international interest in next-generation green hydrogen technology.
Thirsty future: Australia’s green hydrogen targets could require vastly more water than the government hopes
Published: July 9, 2025 10.09pm CEST
Researchers warn that Australia’s plan to produce up to 30 million tonnes of green hydrogen annually could consume between 7% and 72% of the nation’s current freshwater use, far more than government estimates. Electrolysis requires ultra-pure water, and indirect losses during purification and cooling could multiply consumption, raising concerns about impacts on agriculture and ecosystems unless large-scale desalination or alternative water sources are developed.
IRENA: US, China, Australia, and Latin America to Dominate Global Green Hydrogen Export Markets by 2050
July 9, 2025 at 11:23 AM EDT
The International Renewable Energy Agency forecasts a global green hydrogen trade of 260 million tonnes by 2050, with Europe as the largest importer and Australia among the leading exporters despite its higher production costs. Achieving this will require a $2.49 trillion buildout of renewable power, electrolysers, and shipping infrastructure. IRENA stresses that financing costs and strong policy coordination will determine which nations capture market share in the rapidly evolving clean-energy economy.