Green Hydrogen Hype Fades as High Costs Force Project Retreat

Climate-friendly hydrogen was one of the most-hyped sectors in green energy. Now the reality of its high cost is taking its toll.

In recent months, some of the biggest would-be developers of the fuel have canceled projects, axed orders and scaled back investment plans. The low-carbon fuel is simply too expensive to stimulate demand in many sectors of the economy.

On Thursday, Origin Energy Ltd. canceled a project to produce the clean-burning fuel in an industrial area of eastern Australia.

“It has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both ...