By Alexander Tancock, CEO, InterContinental Energy
How has the green hydrogen market evolved over the past decade and how have cost economics changed?
When we started looking seriously at green hydrogen, the industry was largely theoretical. It sat in the background of energy discussions, viewed as something that might one day become relevant. What has changed over the past decade is that hydrogen has shifted from concept to accepted necessity. Heavy industry, steel, shipping, fertilisers and future fuels all need a solution that electricity alone cannot provide, and green hydrogen fits that role.
The biggest evolution has been the move from hype to grounded delivery. Early expectations were unrealistic in some parts of the world, but we are now in a phase where practical engineering, policy alignment and long-term commercial partnerships are shaping the industry. This is normal for every major energy technology. Liquid natural gas (LNG) took around twenty years from concept to commercial maturity. Hydrogen is following that same development rhythm.
On costs, renewables continue to fall in price and electrolysers are scaling quickly. Our own engineering innovation, the P2(H2)Node architecture, removes the inefficiencies of long-distance power transmission and integrates renewable generation, electrolysis and storage in one location. By building in modular phases, we can cut costs by 10 to 20 per cent and replicate systems repeatedly. Costs will keep improving as supply chains deepen, manufacturing expands and giga-scale projects move into construction.
How are ongoing trade and geopolitical issues impacting the emergence of hydrogen hubs?
Geopolitics has reinforced the need for reliable, diversified partners. Countries and industries want long-term energy security alongside decarbonisation. That means they are looking for stable jurisdictions with strong resources, clear policy direction and proven experience delivering large-scale energy infrastructure.
Trade agreements and cross-border frameworks are becoming central to the formation of hydrogen hubs. When countries create predictable investment environments, buyers have the confidence to sign long-term offtake agreements, which are critical for early projects. Regions with well-developed infrastructure and deep pools of capital are naturally emerging as connectors between producers and global demand.
At the same time, buyers are thinking more carefully about risk. They want producers who can prove delivery capability, environmental integrity and community partnerships. Hydrogen hubs are forming in places that meet those expectations. This is why Australia and Oman continue to stand out.
What are the biggest opportunities in the green hydrogen space?
The biggest immediate opportunity lies in sectors that cannot electrify easily. Shipping fuels, green fertilisers, green iron, heavy industry and, eventually, sustainable aviation fuels all require hydrogen or hydrogen derivatives. These markets are moving from discussion to real demand planning, and the first meaningful volumes will be absorbed by them.
Another major opportunity is the creation of integrated hydrogen hubs in locations with exceptional renewable resources. When you design a project that brings together wind, solar, electrolysis, water supply, storage and export in one ecosystem, you create efficiencies that are impossible to achieve through smaller, separated developments. This is where truly low-cost green hydrogen at scale will be produced.
A further opportunity is the economic transformation that these hubs can create for host regions. In places like the Pilbara and the southern coast of Western Australia, we will be creating long-term jobs and building new industries while enabling green metals and green fuels production. Early phases supply local power and hydrogen; later phases support new manufacturing, mineral processing and export industries. It is the foundation for multi-decade regional growth.
What are InterContinental Energy’s key projects in this space?
We are developing three of the most advanced and largest-scale green hydrogen hubs in the world: the Australian Renewable Energy Hub, the Western Green Energy Hub and Green Energy Oman.
The Australian Renewable Energy Hub, located near Port Hedland, is a project we began ten years ago. It will deliver up to 26 GW of renewable resources and has the potential to support the decarbonisation of the Pilbara’s mining sector, which represents around forty per cent of Western Australia’s emissions. It is the most advanced large-scale renewable project in the country, with environmental approvals, land access and an Indigenous Land Use Agreement already in place.
The Western Green Energy Hub sits on Mirning Traditional Lands across 15,000 square km. It is an ultra-scale project with the potential for more than 50 GW of hybrid renewables and up to 3.5 million tonnes of green hydrogen per year. Aside from its scale, what also makes it different is the depth of partnership with the Mirning people, who hold equity in the project and a permanent role in governance. The project is designed not only for export but for local development, including water, energy and new manufacturing opportunities over the long term.
Green Energy Oman combines world-class solar and wind conditions with strong international partnerships. It will supply both domestic industries and export markets in Asia and Europe. The project sits in a country with a long history of delivering major energy developments and is advancing quickly through feasibility and partnership building.
Together these three hubs have a combined renewable resource potential of more than 100 GW and will play a central role in the future global hydrogen economy.
What benefits do Australia and Oman have over other hydrogen economies?
The advantage starts with natural resources. Coastal desert regions in western Australia and Oman have the world’s strongest combination of daytime solar and consistent night-time wind. This diurnal pattern creates a near-continuous renewable profile, which is essential for producing hydrogen competitively.
Land availability is another critical factor. To deliver global-scale hydrogen, vast areas are needed so that multi-decade development phases can drive volumes up and costs down. Both regions offer space for renewable generation without competing with urban populations or grid constraints.
Proximity to global markets also matters. Australia is strategically aligned with the Asia Pacific region, where future demand for green fuels will be immense. Oman is positioned between Europe and Asia, giving it direct export pathways to both regions.
Finally, both regions have experience delivering large, complex energy projects. Ports, logistics, regulatory systems and workforce capability already exist. That reduces risk and accelerates the path from development to delivery.
What are the key challenges that remain in this space, and how can they be addressed?
The challenges are the same ones that LNG, wind power and solar power all faced. Namely scaling the industry through the early stages until costs became competitive in the global energy market without subsidies. In all three cases Governments played the key role in supporting over the first few decades, and in all three cases the technologies were able to scale and eventually become market driven. There is no reason to think green hydrogen will be any different.
However, for at least the next decade, it is clear that Government support will be needed, and for now that is the primary challenge. Ensuring Government policies provide the right level of support to allow major projects to develop and therefore launch a virtuous feedback loop of increasingly lower prices at increasingly greater volumes.
