Lion Energy Ltd. has terminated its joint development agreement with its partners at the Port of Brisbane hydrogen project, citing challenging market conditions and project economics for the decision.
Lion had partnered with DGA Energy Solutions Australia and Samsung C&T Corporation in 2024 to develop a green hydrogen production and refuelling hub.
The facility was intended to service the heavy transport, logistics, and public transport sectors, positioning the Port of Brisbane as a key node in Australia’s budding green energy corridor.
However, Lion Energy confirmed the partnership as dissolved as the hydrogen sector grapples with significant industry-wide hurdles.
The company pointed to a combination of elevated capital costs, unsupportive regulatory frameworks, and a lack of near-term demand visibility on the Australian east coast as the primary drivers behind the decision.
Despite the termination of the joint venture, Lion intends to keep the project in a holding pattern rather than abandoning it entirely.
The company will preserve its existing project rights and approvals, allowing it to explore alternative commercially viable options should market conditions improve in the future.
Lion Energy is shifting its focus to streamline its operations towards its core upstream oil and gas portfolio.
Capital will now be redirected toward near-term, value-accretive opportunities, most notably the Bula Karang-1 prospect. Drilling at the site is expected to spud in early July.
As the green hydrogen industry continues to face challenging investment timing, Lion’s decision reflects a broader trend of energy juniors returning to traditional resource assets to secure shareholder value amidst global economic uncertainty.