Australia's Green Hydrogen Collapse: Why High Costs and Uncertain Demand Grounded Major Projects
Update: 2025-10-25
Description
Australia's green hydrogen transition faces severe setbacks due to high production costs, currently AUD 5−6 per kilogram, which developers cite as making the technology unviable. This cost hurdle, combined with the "chicken-and-egg problem" of uncertain market demand, has led to the cancellation of major projects, including the $12.5 billion CQ-H2 export venture. Further challenges include infrastructure bottlenecks, specialized transport complexity for liquid hydrogen, and unsustainable water resource demands required for large-scale production. Policy focus is now shifting to smaller, domestic industrial applications
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