Lion Energy has chosen a complete exit from its green hydrogen operations, choosing instead to concentrate capital and executive resources on its core upstream oil and gas portfolio.
The decision will see Lion discontinue development of its flagship Port of Brisbane hydrogen project and unwind all remaining hydrogen activities.
The company confirmed that its lease commitments at the Port of Brisbane have concluded and it expects to generate approximately AU$400,000 in net proceeds from the sale of its hydrogen production and refuelling equipment.
The pivot comes after Lion’s joint venture partners opted not to move into the project’s next development phase, citing changing market conditions. While the company achieved key milestones, including securing local planning approvals and executing a joint development agreement, the commercial landscape for green hydrogen infrastructure has faced mounting headwinds.
Elevated capital costs, alongside slower-than-expected policy support and customer adoption, ultimately rendered the project commercially unviable.
The company noted that these pressures mirror broader trends across the Australian clean energy landscape, where proponents are increasingly pausing or scaling back hydrogen projects due to shifting economic realities.
Following the review, the board decided that discontinuing the business unit represented a prudent capital management decision aimed at delivering stronger risk-adjusted returns to shareholders.
Lion will now reallocate its technical expertise and capital toward its conventional exploration assets in Southeast Asia.
Management’s primary focus turns to preparations for the high-impact Bula Karang-1 exploration well within the East Seram Production Sharing Contract (PSC) in Indonesia, which remains on track to spud in the third quarter of 2026.
The company regards the upcoming Indonesian drilling program as a key near-term catalyst to rebuild momentum and unlock long-term shareholder value.
