Trafigura cancels plans to build a $471 million hydrogen facility in South Australia

Trafigura, the global trading company for commodities, has canceled plans to build a green hydrogen plant worth A$750m ($471.2m) at its Port Pirie Lead Smelter in South Australia. A spokesperson said this on Tuesday.

Trafigura, a Swiss company, had commissioned a design study, funded jointly by the South Australian government and Trafigura, in order to reduce the carbon emissions of the plant.

Trafigura has completed a feasibility study worth A$5million for a green hydrogen project in Port Pirie. After the completion of the study it was decided not to continue," said the spokesperson in an email without disclosing any details.

Trafigura and the government had not disclosed the decision to cancel the project. The South Australian government did not respond immediately to a comment request.

The commodity trader established a fund in 2019 to invest in alternative energy technologies.

The green hydrogen produced in electrolysers is a cleaner alternative to fossil fuels for industries that would otherwise be difficult to decarbonise. $1 = 1.5918 Australian Dollars (Reporting and editing by Savio d'Souza; Additional reporting by Sherin sunny in Bengaluru)

(source: Reuters)