Shareholder debt sends WA-based ‘green’ hydrogen hopeful into administration

The collapse of Infinite Green Energy, once chaired by former Woodside Energy chief Peter Coleman, adds to the growing list of prospective hydrogen projects which have failed to materialise.

Infinite Green Energy, a Western Australia-based hydrogen developer, has been placed into administration after it failed to repay a debt to a shareholder of almost $4m.

The collapse of Infinite Green, once chaired by former Woodside Energy chief executive Peter Coleman, is another blow for Australia’s aim of becoming a global leader in hydrogen production – a fuel source that proponents say can accelerate the transition from fossil fuels.

Infinite Green had for months been engaged in a dispute with DD Investment, which claimed it was owed $3.85m.

According to court documents, DD Investment agreed to pay more than $3m for shares in the company. The agreement valued those shares in Infinite Green at $2.25 if its initial public offering were not completed by June 30, 2024.

The deal was then altered to state that Infinite Green would redeem the 1.685 million shares DD Investment held if the float were not completed by an extended deadline.

DD Investment said Infinite Green failed to pay, and the Queensland-based investor launched legal action.

The collapse ends a tumultuous period for Infinite Green. At the height of Australia’s grand hydrogen dream, the company completed an $8m deal for a solar farm in WA, where it planned to produce four tonnes a day of so-called ‘green’ hydrogen in 2024.

The plan had lured several prominent investors, including billionaire Kie Chie Wong, who was an early investor in Andrew Forrest’s Fortescue Metals Group, and Gleneagle Securities.

But the project did not materialise and several high-profile directors, including Mr Coleman, left last year.

Infinite Green is the latest in a number of hydrogen projects that have failed to eventuate. Last month, The Australian reported that global commodities company Trafigura, which owns the ­Nyrstar lead smelter at Port Pirie, had shelved plans to build the world’s largest hydrogen electrolyser ­facility as part of an ambitious scheme which included funding from the South Australian government.

A potential 100-tonnes-a-day facility had been designated to open this year, but the developers opted not to proceed after completing an engineering and design process last year.

Sources said the prohibitive cost of constructing the green ­hydrogen plant, and reduced ­interest from buyers for the green product, both played into the ­decision to abandon the project.

The cancellation at Port Pirie underscores the tough environment to build a green hydrogen industry at scale in Australia.

The federal government has an $8bn war chest aimed at creating incentives for the fuel, and last week pledged more than $800m in production incentives to kickstart the 1500MW Murchison green hydrogen project in Western ­Australia.

Last month, The Australian reported that 99 per cent of a $100bn hydrogen supply pipeline has failed to progress ­beyond the concept stage, which puts a hole in Prime Minister Anthony Albanese’s aim to develop a major export ­industry by 2030 and meet net-zero goals.

Originally published as Shareholder debt sends WA-based ‘green’ hydrogen hopeful into administration