H2 project on Australia’s busiest road hits rough patch

The government-backed project to develop hydrogen refuelling along Australia's busiest road freight route appears to have run into some difficulty as it has still not announced an "industry partner" and the two most likely companies to take on the role — BP and Ampol — appear to no longer be participating in the selection process.

The governments of New South Wales (NSW) and Victoria have offered a combined A$20mn ($13.2mn) to entice a private sector developer to take on the Hume Hydrogen Highway project and planned to announce their chosen partner by mid-2024, but have made no announcement to date.

BP and Australian refiner and retailer Ampol, who have existing road fuel outlets along the route, were participating in the selection process but are no longer in the running, a source with knowledge of the process has said. Government planners appeared to have cooled their interest in the project and had discouraged companies from advancing with it, they added.

A spokesperson for the project from the NSW government declined to comment on the status of the project or the exit of the companies from the process. "There are no updates we are able to provide on this project at this time," they said.

BP and Ampol have not responded to request for comment.

The Hume Hydrogen Highway initiative aims to build a network of at least four hydrogen refuelling stations on "Australia's busiest freight corridor" between the east coast cities of Sydney and Melbourne, the state governments announced in 2022. It is intended to support a fleet of at least 25 hydrogen-powered freight trucks starting from June 2025, and must dispense renewable hydrogen, they had said. The states had also outlined the possibility to expand to Queensland for a future east coast network.

The NSW government is considering changes to its renewable fuels policy, which could involve promoting other renewable fuels aside from hydrogen for short and medium-term CO2 abatement, while maintaining support for hydrogen as a longer-term option, it said last week.

By Aidan Lea