Australia: A Green Hydrogen Project Suspended Due to Regulatory Instability

A major green hydrogen production project in Australia has been suspended, citing regulatory uncertainties and an unstable political environment that are undermining investment profitability.

Share:

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

A major green hydrogen project in Australia, led by an international consortium of companies, has been put on hold, raising concerns about the future of this key sector in the energy transition. The initial goal of the proposal was to produce hydrogen from renewable energy sources, contributing to the export of this green fuel. However, recent changes in Australia’s political and regulatory landscape have prompted investors to slow their commitments or even suspend already well-advanced projects.

Local authorities, while aware of the economic interest in green hydrogen, have yet to establish a stable and transparent regulatory framework for investors. As a result, some green hydrogen production projects that were close to launch have been paused. These uncertainties fuel concerns among companies about the long-term prospects of the industry, which still faces challenges such as infrastructure construction and high operational costs.

Regulatory Uncertainties Weaken Investor Confidence

The suspension of this project is just one example in a sector where political fluctuations and adjustments in government policies directly affect investment decisions. The volatility of energy policies, particularly the revision of subsidies for green hydrogen and changes in climate objectives, has created an atmosphere of uncertainty that weighs on long-term projects. Market analysts believe that regulatory stability is essential to attracting sustainable investments in this field.

Green hydrogen, considered a key vector for decarbonizing several industrial sectors, remains a growing market with significant financial commitments underway. Governments worldwide recognize the strategic importance of this market, but the conditions for development and policy stability remain determining factors in the industry’s evolution.

Impact on Local and International Economic Players

The suspended project also represents a setback for local companies as well as for the international firms involved. Many of these companies, often seeking geographical diversification, aimed to establish a strong presence in Australia, which is a crucial market for green hydrogen exports. The suspension of the project could slow down Australia’s integration into global hydrogen production and export networks.

Economic players, particularly those focused on green technologies, must now reassess the risks associated with their investments in the country. Although Australia has abundant natural resources and significant potential for green hydrogen production, regulatory instability remains a major obstacle to the continued growth of this sector.

Electric Hydrogen announces the acquisition of Ambient Fuels and an alliance with Generate Capital to offer up to $400 mn in hydrogen project financing worldwide starting in 2026.
Hynfra PSA strengthens its presence in West Africa with a $1.5bn green ammonia project, backed by the Mauritanian government, with commercial operations expected to start by 2030.
Over 500 hydrogen projects are now under construction or operational worldwide, with total committed investments reaching USD110 billion, representing an increase of USD35 billion in one year.
From 2029, Verso Energy will supply hydrogen produced in Moselle to steel group SHS, supported by a cross-border pipeline and an industrial investment exceeding €100mn.
The success of SGN’s test on a gas pipeline converted to hydrogen confirms Terra Firma Energy’s technological choices, with sites already equipped to accommodate this type of energy investment.
Lhyfe has started supplying Essent with renewable green hydrogen under a multi-year contract, marking a major commercial debut in the Netherlands for the French producer.
The Dutch government grants major funding to RWE to develop an offshore wind-powered electrolysis facility, marking a key step in the OranjeWind project.
ScottishPower pauses its renewable hydrogen projects in the United Kingdom, despite receiving public subsidies, citing a lack of commercial viability under the HAR1 programme.
thyssenkrupp nucera has completed the purchase of key assets from Green Hydrogen Systems, strengthening its position in pressurised alkaline electrolysis for industrial hydrogen production.
GH2 Solar Ltd partners with AHES Ltd to build an electrolyzer plant in Gwalior, targeting 500 MW capacity by 2030 with $19mn government support.
A cooperation agreement, a bilateral carbon-credit mechanism and converging standards lay the ground for India→Japan hydrogen and ammonia flows, with volume targets, price-support schemes and first export projects scaling up.
Hydrogen offtake agreements are multiplying, with Germany and Japan leading, mobilizing producers and industrial buyers in a still nascent but already highly competitive market.
Vema Hydrogen mobilise des experts internationaux pour accélérer la mise sur le marché de son hydrogène minéral, alors que l’entreprise prévoit de forer ses premiers puits pilotes en Amérique du Nord d’ici la fin de l’année.
First Public Hydrogen Authority opens a request for proposals to transport gaseous and liquid hydrogen across California, with a deadline set for September 12.
US-based manufacturer Ohmium unveils a new generation of modular electrolysers integrating all production systems within a reduced footprint, aiming to lower installation and operating costs for green hydrogen.
ABO Energy and Hydropulse join forces to develop decentralised green hydrogen production units in Europe, with Spain and Finland as priority markets.
Next Hydrogen secures two separate loans, including one from its executives, to consolidate liquidity and continue operations while evaluating long-term financial solutions.
Metacon receives EUR 14.9 million from Motor Oil Hellas for the approved delivery of ten electrolysis units, marking the first stage of a strategic industrial project in Greece.
The European Union’s regulatory framework mandates green hydrogen integration in refineries, generating projected demand of 0.5 million tonnes by 2030.
Air Products transported over 50 tanker trucks to the Kennedy Space Center to fill the world’s largest liquid hydrogen tank, supporting NASA’s Artemis missions.

Log in to read this article

You'll also have access to a selection of our best content.