The Australian Renewable Energy Agency (ARENA) and the Department of Climate Change, Energy, Environment, and Water (DCCEEW) have launched a consultation process for the Australian Government‘s Hydrogen Headstart Program.
The Hydrogen Headstart, announced in the 2023 federal budget, would significantly increase Australia’s renewable hydrogen production by funding some of the world’s largest electrolyser deployments.
The program aims to bridge the market gap for early projects and put Australia on track to have up to a gigawatt of electrolyser capacity by 2030.
ARENA and DCCEEW have released a consultation paper presenting preliminary program requirements. The consultation paper discusses the program’s proposed objectives, eligibility requirements, funding structure, and other aspects.
The consultation paper offers to support projects with a ten-year hydrogen production credit, spanning the cost of hydrogen production and the sales price of hydrogen or its derivative products.
ARENA and DCCEEW will accept written submissions, host an information webinar, and hold consultation forums in Sydney and Perth.
Since 2017, ARENA has been at the forefront of establishing Australia’s renewable hydrogen sector. ARENA has funded more than $255 million in 44 hydrogen projects, including research and development, feasibility and engineering studies, electrolyser installations, vehicle refuelling, and other activities.
In June 2023, ARENA reported that the second of Australia’s 10 MW electrolyser installations, Australian Gas Infrastructure Group‘s Hydrogen Park Murray Valley, had attained financial closure.
According to ARENA CEO Darren Miller, the consultation will provide the best path to a successful renewable hydrogen business.
“ARENA was pleased to see the Australian Government recognise our expertise in renewable hydrogen by calling on us to co-develop the Hydrogen Headstart program,” Miller said.
“The consultation paper we’ve launched today will kick off discussions about how Hydrogen Headstart can best deliver for the Australian public,” Miller stated.
ARENA and DCCEEW will develop the final program design following the consultation phase.
