As the world looks for ways to tackle climate change, Australia has invested heavily in green hydrogen.

Green hydrogen is shaping as the best option to strip carbon emissions from some industrial processes, such as iron-making and ammonia production. But making the dream a reality in Australia is proving difficult.

Two recent announcements are a case in point. This month, the Queensland government withdrew financial support for the Central Queensland Hydrogen Hub. It came weeks after energy company Fortescue cut 90 green hydrogen jobs in Queensland and Western Australia.

I led the development of Australia’s National Hydrogen Strategy in 2019, in my previous job as a federal public servant. I also co-authored a Grattan Institute report on how hydrogen could help decarbonise the Australian economy. Here, I explain the main challenges to getting the industry off the ground.

Hydrogen is the lightest and most abundant element in the universe. It’s usually found as a gas, or bonded to other elements.

It’s used to make products such as fertilisers, explosives and plastics. In future, it may also be a zero-emissions replacement for fossil fuels in industries such as steel and chemicals manufacturing.

Australia currently makes very low volumes of hydrogen using natural gas, which produces greenhouse gas emissions. We are well-placed to produce “green” or zero-emissions hydrogen, through a process powered by renewable energy which releases........

© The Conversation