State calls on industrial giants to keep “Steven Bradbury of green hydrogen” in the global race

The head of Tasmania’s Green Hydrogen Hub has issued a plea to international investors, including the “monsters” of industry whose futures depend on finding solutions industrial decarbonisation, to back the state’s $2 billion green fuel vision.

Ron Green, who is project director for the state government-led Green Hydrogen Hub, told the 7th Annual Tasmanian Energy Development Conference on Thursday that hydrogen would be “very challenging” for the island state.

“Tasmania can’t afford, on its own, to build this,” Green said. “It’s international investment, and that’s the only way to bridge that gap, and it’s international investment tied to the minerals and products that we want to export through off take agreements.”

Tasmania’s Green Hydrogen Hub, which was hoped to be up and running by 2028, has attracted $330 million in grants from the federal and state governments, but project proposals floated by the likes of Fortescue, Woodside and Origin have all so far fizzled out.

The Bell Bay Powerfuels green methanol production plant – currently being developer by Abel Energy, but in talks to be bought by Zen Energy – now remains the only hydrogen project still proceeding at the hub, and on the weekend was tapped by the state government to take the lead as its “provisional proponent.” 

And while this could be counted as a sign of progress for the hub, Green stresses that there is still a long way to go before it’s a sure thing.

“We’re proposing to build a hydrogen hub for $2 billion and, next to Marinus Link, [it’s Tasmania’s] next biggest project. And quite frankly, the demand at the prices that we want is not there.

“So we’ve got a long, long way to go. And I just want to temper people’s expectations around this,” he told the conference in Devonport.

That said, in the context of the current global retreat from green hydrogen investment, it’s impressive that the Tassie plans have made it this far.

Green notes that of the seven projects to receive funding through the federal government’s Regional Hydrogen Hubs program, only the Bell Bay hub – which was awarded $70 million in January 2024 – and the WA Murchison Hydrogen Renewables are still progressing.

“My colleague Kylie jokes that we are the Steven Bradbury of hydrogen,” he told the conference, in reference to the Australian speed ice skater who won a gold medal in the winter Olympics after all of his competitors crashed out on the final corner.

“She’s probably not wrong,” he added, “but it’s a long race, so let’s be patient.”

Green says that the main barrier to establishing a green hydrogen production industry in Tasmania is not so much the shortage of new renewable energy supply – a complaint cited by Woodside when it pulled its proposed H2Tas project last year – but rather a lack of customers.

“The real challenge is the lack of demand for low carbon hydrogen, and the scale of incentives that are needed to bridge the commercial gap between conventional and low carbon hydrogen; and the business case to attract $2 billion in investment that has to be secured by off take,” he told the conference.

And he questioned why more major industrial companies and clean energy financiers were not more actively looking to partner with projects like the Tasmania Green Hydrogen Hub, that are actively fighting to survive and thrive.

“I think Korea Zinc is the only offshore investor… maybe Acen [Australia] … that is here listening to these presentations,” Green said on Thursday.

“Missing is [South Korean steel giant] Posco, [which] buys $12 billion worth of materials from Australia, primary energy materials, and they are committed to decarbonisation. They are not here.

“The others who are not here are [Japanese energy giant] Jera, which owns Parkwind … all of the clean energy banks such as [the Korea Development Bank], … our biggest customer of gas, Cogas is not here, I don’t know if they’re even invited, they should be here, they should be listening.

“Idemitsu, SK Energy – these are monsters that have huge interest in what Australia does with energy, and they should be listening to the Tasmanian story,” he said.

Green also stressed that the government’s selection of Abel Energy’s Bell Bay Powerfuels as “provisional proponent” for the Green Hydrogen Hub was not set in stone – and its relationship with Abel, “non-exclusive.”

“I’ll note that this is a non-exclusive position, and there’s a great deal of work …to do before we can feel confident that they can achieve an FID decision and production by March 2028, which is the term of the deed.

“So, I liken what we’re about to embark on as a bit of engagement… So it’s probably about six months of being engaged with Abel Energy, and then we may or may not decide to get married.

“Do I want to want to be married to multiple partners. Yes, I do. It’s probably not the right thing to say in public, and I wouldn’t say it to my wife, but yes, the Tasmanian government needs to have alternative vectors for hydrogen. …So we want to keep all options on the table.”