MADRID (Reuters) -Developers of green hydrogen have scaled back investments and scrapped projects globally as elevated production costs and weak demand for the low-carbon fuel have made many ventures unviable.
Here are some projects that have been cancelled, postponed or scaled back.
EUROPE
** Energy company LEAG’s plans to build one of Europe’s largest green energy hubs on the site of disused coal-fired power plant units in eastern Germany have been postponed indefinitely, it said in June.
** Steelmaker ArcelorMittal had planned to convert two plants in Germany to green hydrogen, but it shelved the 2.5 billion euro ($2.9 billion) plan in June despite the offer of 1.3 billion euros in public subsidies.
** Iberdrola, Europe’s largest utility, scaled back its green hydrogen ambitions by almost two thirds in March 2024 after funding delays for some projects. Its 2030 production target fell to about 120,000 tons of green hydrogen a year, compared with a previous goal of 350,000 tons.
** Spain’s Repsol cut its 2030 target for green hydrogen production by up to 63% in February to between 0.7 gigawatts (GW) and 1.2 GW of electrolyser capacity by the end of the decade, with Chief Executive Josu Jon Imaz highlighting the challenges of a high-cost industry heavily reliant on subsidies.
** BP said in April that it was shutting its team looking into hydrogen and liquefied natural gas (LNG) for transport.
** Shell scrapped plans for a low-carbon hydrogen plant on Norway’s west coast owing to lack of demand, it said in September, days after Equinor cancelled a similar project planned for Norway.
** Oil refiner and biofuel maker Neste withdrew in October from an investment into renewable hydrogen production at its plant in Porvoo, Finland, citing challenging market conditions.
AUSTRALIA
** Origin Energy said in October that it intended to exit a potential hydrogen development project in the Hunter Valley Hydrogen Hub (HVHH) in New South Wales.
** Global commodities trader Trafigura in March abandoned plans to build a A$750 million ($491.5 million) green hydrogen plant at its Port Pirie lead smelter in South Australia.
** Australian billionaire Andrew Forrest in July last year cut back plans for his company, Fortescue, to produce 15 million metric tons of green hydrogen by 2030, blaming costs and the amount of renewable energy sources needed.
** Woodside Energy, Australia’s largest independent oil and gas producer, shelved two green hydrogen projects in Australia and New Zealand last September.
** The Queensland state government this year pulled funding for a A$12.5 billion plant to produce 200 tons of liquefied hydrogen by 2028, placing the future of one of Australia’s largest and most advanced green hydrogen projects in serious doubt. Japanese investors Kansai Electric and Iwatani exited soon after.
UNITED STATES
** U.S. startup Hy Stor Energy in September cancelled its reservation for more than 1 GW of electrolyser capacity with Norwegian electrolyser manufacturer Nel.
** Air Products said in February that it was looking to cancel plans to construct a 35 ton per day facility to produce green liquid hydrogen in Massena, New York, largely because of regulatory developments rendering existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit.
ASIA
** Japan’s Kawasaki Heavy Industries walked away from a coal-to-hydrogen project in Latrobe last December, citing time and cost pressures.
($1 = 1.5260 Australian dollars)
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(Compiled by Pietro LombardiEditing by David Goodman)
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