When Anthony Albanese pledged $700 million to help power the Hunter Power Project with green hydrogen, the message was clear: Australia was moving towards a cleaner, greener energy future.
This new taxpayer-funded plant was to be a symbol of Labor’s commitment to renewable energy, running on 30 per cent green hydrogen from the outset, with the goal of reaching 100 per cent by 2030. It was a bold promise in line with Australia’s climate goals. But almost three years on, that vision appears to have crumbled, with the plant instead running on diesel, and the $700 million still nowhere to be seen.
The Hunter Power Project, commissioned by the previous Morrison government, was intended to replace energy capacity lost with the closure of AGL’s Liddell coal-fired power station. Labor initially criticised the $600 million project as unnecessary and a distraction from real climate action. However, in the lead-up to the 2022 election, the ALP changed its tune, promising extra funding to transition the plant to green hydrogen. The idea was that the plant would not be “stranded” in an energy system that is rapidly shifting towards renewables.
Yet today, this promise is in tatters. The plant, which began commissioning recently, is operating solely on diesel. Under its original environmental approval, the plant was allowed to run on diesel for a limited time—1150 hours per year, or about 10 per cent of its total operating hours. But at a Senate Estimates hearing last month, Snowy Hydro CEO Dennis Barnes admitted the plant had sought permission to use diesel for the full 1150 hours, and that no steps had been taken to source hydrogen. In fact, when asked about the timeline for incorporating hydrogen, Barnes said, “We are not currently executing that project.”
This marks a glaring failure in both the Albanese government’s energy transition strategy and its ability to deliver on high-profile promises. The $700 million funding for green hydrogen has yet to materialise, and the plant is running on diesel instead of the cleaner energy Labor promised.
Shadow Climate Change and Energy Minister Ted O’Brien has rightly labelled it a “fiasco.” With blackouts already occurring and the plant’s transition to hydrogen nowhere in sight, Labor’s vision of a renewable-powered future seems increasingly distant. Without swift action and real investment, Australia’s transition to clean energy will remain just a promise on paper.
