In last-night’s 2025/26 Federal Budget, the Treasurer of Australia, Jim Chalmers, addressed sustainability by proposing $3 billion be allocated to green steel and green aluminium [1].

This followed the allocation of $8 billion to green hydrogen in the 2024/25 Federal Budget [2].

Green hydrogen failed to take-off, as excessive costs and energy required to produce, compress and store green hydrogen has made it unviable. It isn’t likely to change until more cost-effective hydrogen production processes are developed. Enter “Pink” hydrogen, that is produced using heat and electricity from nuclear reactors, at a 30% to 50% lower cost than the green hydrogen alternative [3]. This is vitally important because we can’t produce low-cost, green steel and green aluminium without low-cost hydrogen and with a grid dominated by intermittent renewable energy.

To make the situation worse, countries making green steel and green aluminium have important strategic advantages.

For instance, green aluminium is made in smelters located close to hydroelectric power stations, such as Niagara Falls [4], and where there is a nuclear power supply such as in France [5]. Green steel also requires a reliable electric arc furnace, driven by a constant and reliable energy source [6].

These factors make a $3 billion investment in green steel and green aluminium premature.

Australia desperately needs a well-thought-out energy roadmap, that is unbiased and includes all energy types, costs, and agility, to address changing demands and technologies.

This isn’t happening with the rushed roll-out of renewables at present.

[1] https://www.industry.gov.au/news/announcing-2025-26-march-budget
[2] https://www.esgtoday.com/australia-invests-over-5-billion-to-develop-clean-hydrogen-sector/
[3] https://www.theguardian.com/environment/2025/mar/24/green-hydrogen-stalled-australia-government-still-revving-it-up
[3] https://thenightly.com.au/politics/rio-tinto-the-mining-budget-winner-as-green-iron-and-aluminium-players-get-a-tariff-busting-3b-free-kick-c-18156339
[4] https://www.alcircle.com/news/greener-aluminium-production-in-the-americas-101802?srsltid=AfmBOooIJdNItOwOEbxkRI1EADoPBw15GeF5Ze2UXHIH0TZUfmWBz_b7
[5] https://www.aluminiumdunkerque.com/our-activity/
[6] https://energynews.biz/could-pink-hydrogen-be-the-answer-to-cheaper-and-more-efficient-hydrogen-production/