Aussie Federal Minister for Climate Change and Energy Chris Bowen

Australia’s Green Hydrogen Dream Collapses

Essay by Eric Worrall

$52 million of wasted taxpayer’s money which could have been used to improve hospitals or roads.

Energy Minister Chris Bowen’s green hydrogen plan unravels as taxpayers left out of pocket over failed hubs

The Albanese government’s green hydrogen dream has collapsed as three regional hubs have been abandoned after more than $52 million in grants were awarded to the failed projects.

Oscar Godsell Political Reporter
August 13, 2026 – 5:00AM

The Albanese government’s green hydrogen plan has suffered another major blow, as three flagship regional hydrogen hubs have been abandoned.

Information provided to News24.com.au in response to Senate Estimates Questions on Notice reveals the government paid $52 million to three failed hydrogen hubs.

According to the Department of Climate Change’s response – Kwinana, Gladstone and Townsville hydrogen hubs have been abandoned, despite receiving $52 million in grants.

The hubs were mutually terminated but the amount taxpayers will recover from the collapsed projects remains unclear.

The figures show $31.7 million was paid to the Kwinana hub, $19.3 million to Gladstone and $1.06 million to Townsville before the projects were abandoned.

[The Kwinana hub in Western Australia] It was supposed to produce more than 14,000 tonnes of green hydrogen a year and create 150 jobs.

Read more: https://www.news24.com.au/politics/australian-politics/energy-minister-chris-bowens-green-hydrogen-plan-unravels-as-taxpayers-left-out-of-pocket-over-failed-hubs/news-story/b70bd4371708f196a6f1a9ae22ed909c

I think our federal energy and climate change minister Chris Bowen genuinely expected these schemes to succeed, I mean if you’re going to pump money into a scheme you expect it to at least last beyond the next electoral cycle.

But green hydrogen was always a non starter – take ridiculously expensive renewable energy which already needs subsidies then put it through a process which through conversion losses eliminates half the energy content, effectively doubling the price of the already unaffordable final product. And that’s assuming the process works smoothly at scale, which it clearly doesn’t.

With scientifically illiterate true believers who think you can store energy like water in charge of the nation’s finances, such haemorrhages of taxpayer capital are inevitable. I suppose we should be grateful that in this case the loss of taxpayer capital wasn’t even worse.

The climate data they don't want you to find — free, to your inbox.
Join readers who get 5–8 new articles daily — no algorithms, no shadow bans.
5 1 vote
Article Rating
Subscribe
Notify of
6 Comments
Tom Halla
August 13, 2026 2:04 pm

And hydrogen sucks to work with in general.

August 13, 2026 2:07 pm

Commercial hydrogen gas is primarily produced using thermal processes like steam-methane reforming (SMR) of natural gas, which accounts for roughly 95% of global production. 
SOURCE
____________________________________________________________________________________________________

So why not just use natural gas in the first place?

That question has been asked many times but never answered.

August 13, 2026 2:08 pm

Green hydrogen was never green. And now it isn’t even hydrogen. Germany failed. Uk failed. And now Australia has failed. That is what usually happens to bad ideas—in this case, sooner better than later because less money got wasted.

Denis
August 13, 2026 2:15 pm

Hydrogen gas is very difficult to deal with. To make it with electricity requires, as the article says, about half of the electrical energy put into the hydrolysis (hydrogen making) process. To compress the product more energy is required, much more than is required to compress comparable amounts of natural gas or other gasses. Pumping it to where you want it with hydrogen compressors is equally energy intensive. Containing it is also difficult because it is a tiny molecule that sneaks through some metals, most any minute gap such as gaskets, and embrittles others. When burned for some use, it provides much less energy than an equal volume of natural gas. All of these properties have been known for a hundred years or more yet some scammers proclaim their wondrous idea to politicians and other ignorant funders, collect lots of money, build some stuff while paying themselves very high salaries — and that is all you get. That is all you will ever get from hydrogen-as-energy scams. If simple ignorance and stupidity was a crime, lots of politicians would be in jail.

Mr.
August 13, 2026 2:16 pm

When the flow of bullshit about alternative energy sources from Bowen et al is just a constant, a few $millions, even $billions here & there just get lost in the avalanche.

I’m with you Eric. Bowen must actually really believe the abject nonsense he spouts about “clean energy”.

The thought that anyone with a scintilla of basic human values would deliberately inflict the kind of financial pain on his fellow citizens is almost too dark to contemplate.

But I guess were seeing these kinds of outcomes from ingrained ideologies all too often these days 🙁

Poor fella my country, indeed.

August 13, 2026 2:33 pm

Coal contains plenty of hydrogen, stabilized with carbon. Australia has a good supply of it.

It’s time to JUST STOP with this fashionable misconception that oxidizing the carbon stabilizer along with the hydrogen, thereby emitting CO2 with the H2O, is capable of causing harm to “the planet.”

There.