SYDNEY: A major Australian “green” hydrogen project is in limbo after the Queensland state government withdrew its support, citing soaring costs.
The project, aimed at producing low-emissions fuel for Japan and Singapore, had secured US$40 million in federal funding, but state officials pulled out on Monday evening, leaving its future uncertain.
Climate Change Minister Chris Bowen called the move “surprising and disappointing,” emphasising Australia’s commitment to green hydrogen as a key industry.
However, he admitted the project’s fate now rests on a “commercial decision” by its backers—Japan’s Iwatani Corporation, Marubeni Corporation, and Singapore-based Keppel.
Queensland officials said infrastructure and shipping costs had ballooned to hundreds of millions of dollars, reflecting broader struggles in the sector.
Origin Energy scrapped a hydrogen plant last October due to sluggish market development, while mining magnate Andrew Forrest shelved similar plans earlier.
Australia aims to develop seven hydrogen hubs powered by solar and wind, but the sector faces major financial and regulatory hurdles.
The International Energy Agency has warned of project cancellations worldwide due to uncertain demand, complex regulations, and high costs.
Despite strong interest from Japan, Germany, and Singapore, green hydrogen remains an expensive bet. – AFP
