Worley has completed a strategic advisory study for the Australian Renewable Energy Agency (ARENA), identifying 24 potential capital cost-reduction levers that could help improve the commercial viability of renewable hydrogen projects.
Commissioned by ARENA, the study examines the key factors driving capital costs in renewable hydrogen production and sets out practical opportunities to bring those costs down as the industry develops.
Rather than relying primarily on conventional hydrogen cost forecasts and broad learning-rate assumptions, the study takes a more granular approach — identifying specific actions capable of materially influencing capital costs over time.
Worley’s Australia-based team, backed by the company’s global hydrogen and project delivery expertise, assessed 24 independent cost-reduction concepts and examined their combined impact across future development horizons.
The analysis was designed to give decision-makers a clearer view of which levers could have the greatest impact, while showing how individual measures interact.
“We were asked to take one step beyond typical hydrogen cost studies and be explicit about what will actually move the needle on capital costs,” said Christian Dorgelo, Associate, Advisory at Worley Consulting. “By breaking the problem down into individual levers and showing how they work together, the study provides insight that can directly inform strategic decisions.”
The findings have already fed into executive-level discussions at ARENA and contributed to broader strategic planning around renewable hydrogen development.
Alexa Thompson, Strategy Lead for the study at ARENA, said the agency valued Worley’s approach and the practical nature of the analysis.
“We greatly valued Worley’s collaborative and responsive approach, and the quality of both the analysis and the executive-level conversations they supported,” said Alexa Thompson, Strategy Lead for the study at ARENA. “The team delivered a robust, executive-ready analysis and a practical capex model that will continue to inform our work beyond the report.”
The study comes as the renewable hydrogen sector confronts a critical challenge: turning ambitious production targets into projects that can compete commercially.
By focusing on specific capital-cost drivers rather than broad cost forecasts, the analysis gives policymakers and project developers a clearer roadmap for where intervention and innovation could deliver the biggest gains.
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