Andrew Forrest, a mining magnate renowned for his commitment to green hydrogen projects, joins Mike Seccombe, a national correspondent for The Saturday Paper. They discuss the rising skepticism surrounding hydrogen's viability in renewable energy. The conversation delves into the ambitious beginnings of hydrogen initiatives in Australia, the challenges posed by political tensions, and the critique of major energy ventures. As Forrest scales back his green hydrogen projects, they navigate the fraught landscape of energy policy and the shifting perceptions of hydrogen technology.
Hydrogen was initially celebrated for its versatility in decarbonization, but complexities and costs have led to a significant reevaluation of its viability.
Despite reduced enthusiasm for hydrogen as a transportation solution, it may still play a crucial role in specific industries like iron and aluminum production.
Deep dives
The Rise and Fall of Hydrogen Expectations
Hydrogen was initially heralded as a breakthrough energy source, touted for its abundance and potential to decarbonize various industries. Enthusiasts pointed to its versatility, claiming it could be used for everything from powering vehicles to home heating and as a means of storing renewable energy. A significant development involved the success of hydrogen cars powered by ammonia in Queensland, illustrating the promise hydrogen held for making Australia a renewable energy leader. However, shifting realities have led many, including key proponents, to reconsider hydrogen's role in the energy landscape as practical applications proved more complex and costly than anticipated.
Changing Perspectives on Hydrogen's Viability
Tim Buckley, a notable advocate for hydrogen, changed his stance after witnessing advancements in electric vehicles in China, leading him to declare hydrogen cars obsolete. The anticipated reduction in production costs for green hydrogen has not materialized, creating skepticism about its future viability. Concurrently, mining tycoon Andrew Forrest scaled back his ambitious hydrogen production goals, citing prohibitively high electricity prices as a barrier to success in this sector. This collective shift in perception reflects a broader realization that hydrogen may not fulfill its once-promised potential across several applications.
Government Plans Amidst Market Uncertainty
Despite the cooling interest in hydrogen, the Australian government remains committed to its Hydrogen Head Start Plan, investing $4 billion to support large-scale renewable hydrogen projects. Some industry leaders still hold a positive outlook, asserting that the market has not abandoned hydrogen but is simply adapting its focus. Ongoing developments indicate that while hydrogen may not serve as a widespread transport solution, it still holds potential for applications in areas like iron and aluminum production. The political implications of these shifts suggest a complex energy debate as stakeholders weigh the future of hydrogen against competing renewable solutions.
It wasn’t so long ago that renewables pundits glowingly described hydrogen as the “Swiss Army knife” of renewable technologies, able to be turned to almost any purpose.
But more recently, the gas has become an expensive and painful point of political debate, with many experts tempering their praise.
Now, one of hydrogen’s biggest backers, mining magnate Andrew Forrest, has announced he is scaling back his green hydrogen projects.
Today, national correspondent for The Saturday Paper Mike Seccombe on how the green hydrogen dream evaporated.