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Energy

Australia's hydrogen dreams colored by 'blue' vs. 'green' divide

Reliance on fossil-fuel based output seen as risk to future competitiveness

A fierce debate is unfolding over whether Australia's nascent hydrogen industry should be powered by fossil fuels or renewables. (Source photo by Getty Images) 

SYDNEY -- Australia aspires to become a hydrogen superpower in the next decade but some experts say a push for fossil fuel-based, rather than renewables-backed production could undermine its future competitiveness and leave some projects stranded.

The country has emerged as a key player in the global hydrogen supply chain, with nearly 30 projects under construction or in the advanced planning stages. Many of these will come on stream by 2025, putting the country on track to become a top-three exporter to Asia by 2030.

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