Australia’s Green Hydrogen Outlook Seen Souring Before Elections
(Bloomberg) -- Australia’s ambitions to become a major producer of green hydrogen may follow a similar trajectory to the US’s move away from renewable energy if the government loses elections due by mid-May, according to project ratings agency HySights Pte Ltd.
The ratings of six projects selected under an initial A$2 billion ($1.3 billion) program to encourage the nascent sector have dropped an average of two bands since the third quarter, according to HySights. None of them are now considered “bankable” — or able to meet criteria including minimum costs — after sponsors left or they were paused, the Singapore-based company said.
“Australia’s likely change in ruling party will have a major impact on projects in the country,” HySights co-founder Ciaran Roe said. Considering the “export-oriented nature of four of the projects, these changes have wide-ranging impacts on government incentive schemes for low-emission fuels in Japan, South Korea, and Singapore,” he said.
Anthony Albanese’s Labor government had pushed for Australia to tap its abundant wind and solar resources to develop a clean hydrogen sector, putting in place more than $5 billion of incentives over the next decade to support the nascent industry. The opposition coalition, which has edged ahead in polls, has been less enthusiastic, recently denying A$1 billion of funding for a major project.

Renewable hydrogen remains reliant on government support to be economically competitive, while implementation and fund allocations need to happen faster for the local hydrogen industry to take off, BloombergNEF Analyst Caroline Chua said in a note. Queensland’s earlier withdrawal from financial investment also raises concerns about the federal administration’s ability to deliver on its hydrogen and clean energy supply chain ambitions, she said.
©2025 Bloomberg L.P.
KEEPING THE ENERGY INDUSTRY CONNECTED
Subscribe to our newsletter and get the best of Energy Connects directly to your inbox each week.
By subscribing, you agree to the processing of your personal data by dmg events as described in the Privacy Policy.
More renewables news

Trump Halts NY Offshore Wind Project Work Amid Sector Review

Big Bets on Speculative Carbon Capture Tech Ignore Today’s Solutions

UK Grid Warns Record Low Power Use to Test Network This Summer

AI to Prop Up Fossil Fuels and Slow Emissions Decline, BNEF Says

UK Approves Grid-Queue Overhaul in Race to Clean Up Power System

Europe’s Hottest Year Turbocharged Extreme Weather Across Region

Khosla-Backed Energy Startup Nabs $258 Million to Help Power Data Centers

Peter Thiel Joins Board of Enriched Uranium Startup General Matter

Plan to Green 30,000 Africa Buildings Seeks $150 Million Boost
