"One of Australia's biggest energy companies has pulled out of plans to build the country's biggest green hydrogen plant, saying the fuel is too expensive to produce.

In a blow to the federal government's ambitions of developing a green hydrogen industry in Australia, Origin Energy today said it was walking away from a planned project near Newcastle in New South Wales.

The project, known as the Hunter Valley Hydrogen Hub, includes explosives giant Orica and was set to involve the production of 5,500 tonnes a year of hydrogen made using renewable energy.

But in a statement to the Australian Stock Exchange this morning, Origin boss Frank Calabria said the company was "exiting" the project because it could not get the maths to add up.

What's more, Origin told investors it "intends to cease work on all hydrogen development opportunities".

The announcement is a further setback for the fledging hydrogen industry and its backers in Canberra after billionaire Andrew Forrest's Fortescue slashed jobs and cut investments in the technology.

"We continue to believe hydrogen could play a role in the future energy mix," Mr Calabria said.

"However, it has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome.

"The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project."

Decision a 'disappointment'

Federal Climate Change and Energy Minister Chris Bowen, who has spearheaded the federal government's hydrogen sales pitch, criticised the decision by Origin.

Mr Bowen said it was a disappointment that sold short Australia's potential to be a leader in any green hydrogen industry that emerges globally.

He said the government's incentives – headlined by its $8 billion hydrogen head-start program – could "unlock" billions of dollars in private investment.

And he applauded Orica for remaining part of the Hunter Valley project, saying the company "remains committed to … the region and to manufacturing solutions for a low carbon economy."

https://www.msn.com/en-au/money/markets/energy-giant-origin-retreats-from-flagsh...

So Origin should have gone ahead even though the numbers don't stack up.

Aurora Complexus wrote on Oct 3^rd, 2024 at 8:31pm:


It still emits CO2 when burnt.

Aurora Complexus wrote on Oct 3^rd, 2024 at 9:07pm:


That's not his beef at all.

Aurora Complexus wrote on Oct 3^rd, 2024 at 9:41pm:


I honestly don't think you have any on this topic.

lee wrote on Oct 3^rd, 2024 at 7:49pm:


Why is it too expensive to collect river water, filter it, and then perform electrolysis in massive quantities?

Cheaper than spending that money on importing refined oil from our own crude oil back from the Singaporeans.

lee wrote on Oct 3^rd, 2024 at 10:08pm:


The Chinese have those hydrogen stations. During their flooding, the Chinese rivers have enough flood water to collect that the Chinese can have plenty of power for the next few months.

UnSubRocky wrote on Oct 4^th, 2024 at 4:48pm:



Yes. Electrolysis requires stable power. Renewables do not provide stable power. Then there is the energy required to compress the hydrogen, the risk of embrittlement, gas leakage, explosions.