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In short:
Fortescue Future Industries says a green hydrogen project at the closed Liddell Power Station site in NSW is no longer a priority.
Fortescue chair Andrew Forrest launched a feasibility partnership with AGL, which owns the site, in 2021.
What's next?
AGL says it is still interested in developing green hydrogen at Liddell, alongside other renewable industries.
Multinational metals giant Fortescue has confirmed it has put green hydrogen plans for the NSW Upper Hunter on the backburner.
The move comes a day after its executive chairman, Andrew Forrest, declared he was not walking away from hydrogen.
Mr Forrest made the statement while defending Fortescue's move to slash 700 jobs, mostly in Western Australia.
"We're not backing off green hydrogen, we're doubling up on green energy ... this is because if you walk away from green energy you're going to walk away from the future of your kids," he told ABC's 7:30.
In 2021, Mr Forrest visited the now-closed Liddell Coal Fired Power Station near Muswellbrook, which is owned by AGL.
During that visit, it was announced Fortescue Future Industries (FFI) and AGL would launch a feasibility study to explore a potential green hydrogen facility at the site.
FFI confirmed to the ABC today that hydrogen plans at the Liddell site were no longer a priority for the company, and it will instead focus on four other hydrogen projects in Queensland, the United States, South America and Europe.
The ABC has requested further comment, or an interview, with FFI.
In a statement to the ABC, an AGL spokesperson said it would continue to explore green hydrogen options at Liddell.
"AGL remains committed to exploring options to produce green hydrogen and future fuels at the Hunter site in the future if economically feasible," the spokesperson said.
"We continue to execute on our strategy to transform the Hunter site into a low-carbon industrial energy hub with partner agreements signed across the renewables value chain."
The spokesperson said that included solar manufacturing, and panel and battery recycling.
'Necessary regrouping'
Director of energy industry think tank Climate Energy Finance, Tim Buckley, said he understood why FFI had backed away from the Liddell idea after conducting the feasibility study.
He said Mr Forrest was ambitious in thinking the project, and other FFI green hydrogen projects, could take off so quickly.
"I think this is a very necessary regrouping by 'Twiggy' Forrest," he told the ABC NSW Country Hour.
"He went in so passionately and he went in too many directions globally, and just too fast and too much ahead of the pack."
Mr Buckley said the technology for green hydrogen was still lagging behind in many respects, especially in the large cost of exporting hydrogen from Australia to the world.
"[The technology] is yet to be commercialised, and I say that in terms of production but more importantly in terms of international transportation," he said.
"The cost of the transportation is prohibitive and it's in fact not even commercially viable at this point in time, and won't be for another decade."
Hydrogen for the Hunter
Hydrogen industry advisor and co-lead of NewH2 Hunter Hydrogen Technology Cluster, Boris Novak, said there are still several hydrogen explorations underway in the coal-heavy region.
"The other project that is still going through the processes here in the Hunter Valley hydrogen hub is the collaboration between Orica and Origin at the Port of Newcastle," he said.
"That's a pilot program.
"Remembering, of course, that hydrogen is not the only technology in terms of that journey to net-zero — there's a whole lot of other things occurring across the region."
Mr Novak said while it was unfortunate to hear of FFI's changed plans, it showed the importance of feasibility studies.
"That's exactly what the feasibility studies are for, to determine whether or not something is feasible to invest in," he said.
"What I've read in the public domain is that Twiggy stated that they couldn't make it cheaply enough.
"Which reinforces why we need some kind of intervention to bridge the gap in terms of what the green premium is, and whether bringing around a better parity in terms of the competitive landscape with competing with legacy-derived sources of energy [is viable]."
Mr Novak suggested that could involve additional levies on fossil fuel energy sources like coal and gas.
"I guess it just reflects that the cost of doing energy [projects is] probably higher than what we've ever had to do."