Dutch commodities giant Trafigura has scrapped its A$750 million green hydrogen project in Port Pirie, South Australia, citing high construction costs and weak market demand. 

The facility, originally set to begin operations in 2025 with a daily output of 100 tons of green hydrogen, had government backing but failed to proceed. This cancellation highlights challenges in Australia’s green hydrogen sector, despite federal commitments of A$8 billion in industry support. 

While projects like the 1,500MW Murchison green hydrogen plan are moving forward, critics argue that commercial viability remains uncertain. 

Energy analysts warn that high production costs and efficiency losses could hinder progress, while green hydrogen supporters still believe that the government's support for the green hydrogen industry is extensive and there is still potential in green steel development.