The Australian Renewable Energy Agency (ARENA) has invited six shortlisted applicants to submit full applications for the $2 billion Hydrogen Headstart Program.
Together, the applicants offer a total electrolyser capacity of over 3.5 GW across diverse end users, putting them among the world’s largest renewable hydrogen projects.
The shortlisted applicants include:
- bp Low Carbon Australia – H2Kwinana
- HIF Asia Pacific Pty Limited – HIF Tasmania eFuel Facility
- KEPCO Australia Pty Ltd – Port of Newcastle Green Hydrogen Project
- Origin Energy Future Fuels Pty Ltd – Hunter Valley Hydrogen Hub
- Stanwell Corporation Limited – Central Queensland Hydrogen Project
- Murchinson Hydrogen Renewables Pty Ltd as trustee for Murchinson Hydrogen Renewables Project Trust – Murchinson Hydrogen Renewables Project
The shortlisted applicants are developing large-scale electrolysers of at least 50 MW, aiming to significantly impact the renewable hydrogen industry in Queensland, NSW, Tasmania, and Western Australia.
The Hydrogen Headstart Program, announced in the 2023-24 budget, aims to boost Australia’s hydrogen industry, aiming to become a global leader in the sector.
The Program allows projects to apply for a production credit over ten years for renewable hydrogen or derivatives, aiming to bridge the commercial gap between the cost of producing renewable hydrogen and the market price.
Hydrogen Headstart is expected to boost Australia’s investment in the renewable hydrogen industry, signalling its potential as a promising investment destination for hydrogen production and infrastructure.
ARENA CEO Darren Miller stated that the high interest in the program indicates that project developers are gaining confidence in Australia’s potential to host this crucial new industry.
“Hydrogen Headstart is a crucial step towards keeping Australia on the path to become a global hydrogen leader, creating new export opportunities, while helping to decarbonise our economy,” Miller said.
“The applicants shortlisted for the next stage provide us with the best opportunity at fast tracking our renewable hydrogen industry. It’s great to see the commitment from Australian companies who are looking to invest in and utilise hydrogen in their own decarbonisation efforts.”
ARENA’s performance as a renewable hydrogen pioneer is built on Hydrogen Headstart, with the Agency having already committed over $315 million to 48 renewable hydrogen projects since 2017.
This funding is in addition to more than $500 million in Australian Government funding administered by the Department of Climate Change, Energy, Environment, and Water for regional hydrogen hubs in regions like the Hunter Valley, Gladstone, and the Spencer Gulf.
ARENA has significantly contributed to developing the Australian renewable hydrogen industry, fostering research and development projects, first-of-its-kind deployments, hydrogen refuelling, hydrogen vehicles, renewable ammonia production, alumina refining, and remote power.
The overall level of applications to the Program delighted ARENA, which believes it provides an exciting foundation for the industry to grow from in the future.
“ARENA has long supported an Australian renewable hydrogen industry. Hydrogen Headstart is the logical continuation of our work, providing further funding to support the acceleration of renewable hydrogen,” Miller said.
Minister for Climate Change and Energy Chris Bowen stated that renewable hydrogen is crucial for achieving net zero and generating economic opportunities in regional Australia.
“We have the largest pipeline of renewable hydrogen projects in the world — Hydrogen Headstart is about supporting these projects to become a reality, as Australia transforms into a renewable energy superpower,” Bowen added.
The Australian Government plans to announce funding recipients in late 2024, and shortlisted applicants must submit their full applications by 27 June 2024.
