Australia's Hydrogen Industry: Can Local Projects Overcome Costly Challenges
As Asian buyers prepare to launch tenders for low-carbon hydrogen and ammonia, Australian projects face delays and investment uncertainty due to high production costs and infrastructure challenges
Japan and South Korea are set to launch their subsidy schemes in 2024-25 for low carbon hydrogen/ammonia and market expectations currently pin on projects emerging in Asia and the Middle East, together with the US as better placed to cater to their demand owing to their low-cost fuels and established supply lines.
Australian renewable hydrogen projects face challenges in securing supply deals due to high production costs and focus on renewable hydrogen.
Middle East and US are better positioned to meet Asian demand for low-carbon hydrogen and ammonia.
Australia's renewable hydrogen projects face delays and investment uncertainty due to high costs and infrastructure challenges.
Because offtake agreements have eluded big projects in Australia, investors have shied away, resulting in delays. Fortescue missed its deadline to secure a final investment decision on March 31 for its Gibson Island project, its renewable energy partner Genex Power said in April.
Ark Energy was supposed to start production in 2022, according to an interview by CEO Daniel Kim with S&P Global Commodity Insights. But the company website says it will start production this year.
Detailed Read
Australia's Renewable Hydrogen Projects at Risk
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