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Green Hydrogen

Australia’s Hydrogen Hype Faces High Costs Challenge

Anela DoksoBy Anela Dokso07/10/20241 Min Read
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When Prime Minister Anthony Albanese introduced The Future Made in Australia package for the 2024-2025 Budget, hydrogen was prominently featured as a key element in the nation’s energy aspirations. This emphasis highlighted the potential role of hydrogen in powering the country’s future.

However, recent developments indicate a shift in the hydrogen narrative. Origin Energy, Australia’s second-largest power producer, announced its decision to withdraw from the Hunter Valley Hydrogen Hub project in New South Wales. This move marks their exit from all hydrogen development ventures, signaling potential challenges in the economic feasibility and long-term commitment to hydrogen projects.

Mick Liubinskas, a Climate Technology Advisor, Investor, and CEO of Climate Salad, provided insights into the current situation. As part of the Australian Climate Tech Community, Liubinskas brings expertise in navigating the evolving landscape of climate technologies, including hydrogen.

While hydrogen was initially championed for its clean energy potential, the costs associated with its production and infrastructure development pose significant hurdles. The lessons from the hydrogen initiative could inform future strategies in achieving sustainable and economically practical energy solutions.

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