The Australian Renewable Energy Agency (ARENA) has announced applications are now open for the $2 billion Hydrogen Headstart program.
The program, announced in the 2023-24 budget, intends to stimulate Australia’s hydrogen industry to capitalise on Australia’s opportunity to be a global hydrogen leader.
Projects looking to create renewable hydrogen or its derivatives at scale can apply for a production credit delivered over ten years to close the gap between the cost of creating renewable hydrogen and the market price.
The Hydrogen Headstart program was designed by ARENA and the Department of Climate Change, Energy, Environment, and Water (DCCEEW) after collaboration with various relevant stakeholders, including 114 written submissions and three public forums with over 400 participants.
According to ARENA, renewable hydrogen is a promising zero-emission energy vector and feedstock with the potential to alter Australia’s energy system, even in hard-to-abate sectors, but the growing industry requires government assistance as it scales up.
Hydrogen Headstart builds on ARENA’s achievements as a renewable hydrogen pioneer, with over $308 million committed to 46 renewable hydrogen projects since 2017.
ARENA has significantly contributed to developing the Australian renewable hydrogen industry, supporting research projects, first-of-a-kind deployments, hydrogen refuelling, hydrogen trucks, renewable ammonia production, alumina refining, and remote power.
“ARENA has been there at every step of Australia’s hydrogen journey, and we’re thrilled to be delivering this transformative program,” ARENA CEO Darren Miller said.
Miller noted that Australia is poised to become a global leader in the renewable hydrogen sector due to its abundant renewable energy resources.
“As other countries step up their ambition, Australia is meeting the challenge and providing the investment we need to stay competitive in the global hydrogen race,” he stated.
“This is the Australian Government’s largest investment in renewable hydrogen to date and a critical step in unlocking Australia’s renewable energy superpower,” he added.
Expressions of Interest are being accepted through 10 November 2023.
