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# Australian Renewable Energy Hub's $50b plan shrinks and drops hydrogen
- URL: https://www.boilingcold.com.au/australian-renewable-energy-hubs-50b-plan-shrinks-and-drops-hydrogen/
- Published: 2026-08-27T03:12:35.000Z
- Updated: 2026-08-27T03:12:35.000Z
- Description: The project in WA's North West will now chase power sales to Pilbara miners.
- Author: Peter Milne
- Tags: >>>>> BREAKING NEWS <<<<<, Australian Renewable Energy Hub, Renewable Energy, Green Hydrogen, Hydrogen, Ammonia, Pilbara

Australia's largest renewable energy project has been nearly halved, and the clean electricity will no longer be used to produce ammonia from green hydrogen.

The Australian Renewable Energy Hub was to incorporate 26 gigawatts of wind and solar power generation over 6,500 square kilometres of WA's North West to make 10 million tonnes of green ammonia a year, at a cost of about $50 billion.

Plans to produce hydrogen from water using renewable electricity and then use that hydrogen to make ammonia have been dropped just months after the Federal Government backed further development with a $22 million grant.

On Wednesday, WA's environmental watchdog, the EPA, [posted](https://epa.wa.gov.au/sites/default/files/Termination%5Fnotice/Notice%20to%20terminate%20assessment%5F2.pdf?ref=boilingcold.com.au) that it had terminated its assessment of the project at the request of the proponents, [InterContinental Energy](https://intercontinentalenergy.com/portfolio-of-projects/?ref=boilingcold.com.au) (ICE) and [CWP Global](https://cwp.global/terra/tag/australian-renewable-energy-hub/?ref=boilingcold.com.au).

An ICE spokeswoman said the project's initial phases would continue under an earlier approval for a 15-gigawatt power project. 

She said the now-dumped referral "proposed a number of additional elements, including desalination and green hydrogen and ammonia production infrastructure, alternative export arrangements, an expanded solar footprint and a company town."

![The Australian Renewable Energy Hub is located between Port Hedland and Broome](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/2026/08/image.png)

****Hub location between Port Hedland and Broome** *. Source: AREH*

"ICE has requested termination of that unassessed referral as an administrative clean-up, as no assessment of those proposed revisions is being progressed under that referral," she said.

The 15-gigawatt plan lodged with the EPA in 2018 and approved by the WA Government in 2020 envisages exporting power to Indonesia and Singapore via subsea cable. 

However, *Boiling Cold* understands the target market is now miners in the Pilbara. Any attempt to make low-emissioms green iron in the Pilbara will likely need vast amounts of power to either use directly, or to make green hydrogen on site.

For over a decade ICE and CWP Global have sought ways to monetise their exclusive rights to develop renewable energy in the project area. 

In that time blue chip partners Vestas, Macquarie and BP have come and gone, and the market has switched from power to South East Asia, then exporting green ammonia, and now clean power to the Pilbara (see timeline below).

[Alcoa refuses to rule out mining the Perth HillsAlcoa raised hopes that the jarrah forest inland from Perth would escape its bauxite strip mining, but the US miner is keeping its options open![](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/icon/bc_symbol-26ab241c-e18c-474e-8415-2bd5b1e9ca9f.png)Boiling ColdPeter Milne![](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/thumbnail/perth-hills-1-e6570f1b-70eb-412d-96f0-429626b1fa7d.jpg)](https://www.boilingcold.com.au/alcoa-refuses-to-rule-out-mining-the-perth-hills/)

## Hydrogen retreat

The news of AREH moving away from hydrogen production comes days after Woodside canned its commitment to [invest $US5 billion in clean energy](https://www.theguardian.com/australia-news/2026/aug/25/woodside-scraps-emissions-clean-energy-targets-australia?ref=boilingcold.com.au) by 2030\. The move will further reduce the likelihood of it building its [PerthH2 plant](https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=CAEShwEB6zswFTTe5CmEK73%5FfyMIEOlzdDmd48mLCMLtdx8bRMLRrHVtVHB-HJoADLGR%5F%5FgkhTol6KCQy%5Fa79Tav94yOcNR7KipSbQVBs-R%5FsF7jbraS-mlnhV5--5IninrCYkm1II4LdU9tR8mO7WLSldrEhoDWV431bIkT7FTLqbGs6SH60KtCvQs&ved=2ahUKEwiKgeqA6r-WAxUPTGwGHaqvKt4QFnoECBgQAQ&uoh=2&usg=AOvVaw0vblbjluQU%5FoPKsWkv-FOZ) to export lower-carbon blue hydrogen.

Woodside did invest $US2.35 billion in the Beaumont blue ammonia project in Texas. However, the future of the investment to produce lower-carbon blue ammonia by using carbon storage is now under review.

In 2025, fellow WA company Fortescue [axed two green hydrogen projects](https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.theguardian.com/environment/2025/jul/25/fortescue-cancels-green-hydrogen-projects-trump-us-policy-renewable-energy&ved=2ahUKEwjZ9pLbm76WAxVUcGwGHRQQCXQQFnoECDgQAQ&usg=AOvVaw1IszkF5Qp113pHzj6FNX4m) and [slashed jobs](https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.abc.net.au/news/2025-05-14/fortescue-green-hydrogen-job-losses/105291962&ved=2ahUKEwjZ9pLbm76WAxVUcGwGHRQQCXQQFnoECDcQAQ&usg=AOvVaw2wQArOxIiutpYiITHo-35u) associated with the clean fuel.

## Government dollars for hydrogen plan

In January, the Australian Renewable Energy Agency (ARENA) [backed the AREH project](https://arena.gov.au/projects/intercontinental-energy-decarbonising-the-pilbara-and-beyond/?ref=boilingcold.com.au) with $22 million towards a $95 million study focused on renewable hydrogen production in the Pilbara.

ICE said the study would advance the project's aim to produce [large volumes of low-cost green hydrogen](https://assets.ctfassets.net/8jlz82vr8e01/7KL1Lt0wqnC1O6NgA1ulWl/c365ae678b7ccabdada4a2b3809e45ce/ARENA%5F%5F%5FAREH%5FPress%5FRelease%5FFinal%5F27%5FJan.pdf?ref=boilingcold.com.au) to underpin efforts to make green iron in the Pilbara.

*Boiling Cold* asked ICE and ARENA about the future of the government grant and is yet to receive responses.

[![](https://storage.ghost.io/c/f1/e6/f1e6ac34-dd15-4046-a261-93b6cf1963bf/content/images/2025/10/CTA-industry-energy-climate.png)](https://www.boilingcold.com.au/support/)

---

## Timeline of an ever expanding green dream

*2014* \- Planning begins

*2016* \- WA Government awards exclusive rights to develop a renewable energy project over a vast area between Port Hedland and Broome.

*2017* \- InterContinental Energy, CWP and wind turbine manufacturer Vestas [launch the Asian Renewable Energy Hub](https://www.perthnow.com.au/news/business/energy/asian-renewable-energy-hub-plans-132b-pilbara-renewables-plug-in-to-light-up-south-east-asia-ng-b88676878z?ref=boilingcold.com.au) to supply **five gigawatts** of wind and solar electrical power to Indonesia through subsea cables at a cost of **$13 billion.** A final investment decision (FID) for the Asian Renewable Energy Hub was planned for **2020**.

*2018* \- [Planned capacity increased](https://www.businesstimes.com.sg/companies-markets/energy-commodities/macquarie-joins-huge-australian-solar-wind-project?ref=boilingcold.com.au) to **11 gigawatts** to provide power to the Pilbara as well as Indonesia. Macquarie joined as an investor at a cost of **$22 billion**. FID planned for **2021**.

*May 2020* \- [WA EPA approves](https://www.boilingcold.com.au/pilbara-wind-solar-farm-gets-environmental-tick/) **$22 billion** plans for **15 gigawatts** of generation. FID planned for **2025**.

*October 2020* \- AREH switches to **26 gigawatts** of renewable generation to produce [10 million tonnes a year of green ammonia](https://www.boilingcold.com.au/pilbara-energy-hub-targets-10m-tonnes-a-year-of-green-ammonia/) for export at a cost of **$50 billion**. Project to span 6,500 square kilometres. FID still planned for **2025**. Revised proposal submitted to the WA EPA.

*2022* \- BP [buys a 40 per cent stake](https://www.bp.com/en%5Fau/australia/home/media/press-releases/bp-to-lead-and-operate-one-of-the-worlds-largest-renewables-and-green-hydrogen-energy-hubs-based-in-western-australia.html?ref=boilingcold.com.au) in AREH and assumes operatorship. Vestas no longer involved. Project renamed the Australian Renewable Energy Hub.

*2024* \- [Macquarie sells out](https://www.watoday.com.au/business/companies/macquarie-exits-bp-s-55-billion-wa-green-energy-project-20240226-p5f7y6.html?ref=boilingcold.com.au) to BP.

*2025* \- [BP pulls out](https://www.boilingcold.com.au/bp-pulls-out-of-mega-scale-pilbara-hydrogen-project/). ICE back in charge.

*January 2026* \- ARENA contributes $22 million to investigate hydrogen production.

*August 2026* \- ICE reverts to the **15 gigawatt** plan approved in 2020, with no hydrogen or ammonia produced.