Australia invests $814 million in struggling green hydrogen

Australia's green hydrogen industry is facing significant challenges. Recently, Climate Change and Energy Minister Chris Bowen announced $814 million in funding for hydrogen projects, even as many major initiatives face uncertainty. In the past months, major companies like Origin Energy have withdrawn support for hydrogen hubs in New South Wales, while the Queensland government pulled $1 billion from a key project. South Australia also paused plans for a hydrogen plant, choosing to focus on existing steelworks. Despite these setbacks, the Albanese government remains committed to green hydrogen. Some believe the hype around hydrogen has outpaced reality. Experts acknowledge that while the path has become clearer in terms of challenges, it does not mean the industry is doomed. The shift from excitement about hydrogen to a more practical approach is seen as a positive sign. Experts recognize that new technologies often go through cycles of hope and disillusionment, but many still believe hydrogen can find its place in areas like chemical production. Cost remains a major barrier for green hydrogen production. Creating hydrogen is currently expensive and relies heavily on electricity. As renewable energy technologies become cheaper, they may outcompete hydrogen for some applications. Analysts still see a limited but important role for hydrogen, particularly in making ammonia and in the steel industry, which accounts for a significant portion of global emissions. Some believe Australia has the resources and infrastructure to lead in these areas. While the initial projects may be costly, experts assert that with ongoing support and investment, Australia can build a successful hydrogen industry. The country has previously developed a strong renewable energy sector and could replicate this success with hydrogen.