Australia launches $2bn Hydrogen Headstart programme

The Australian Renewable Energy Agency (ARENA) has opened applications for the AU$2 billion (US$1.3 billion) Hydrogen Headstart programme.

Announced in the 2023-24 budget, the programme aims to accelerate development of Australia’s hydrogen industry, catalyse clean energy industries and help the county connect to new global hydrogen supply chains to take advantage of the sector's jobs and investment potential.

Projects seeking to produce renewable hydrogen or derivatives at scale can apply for a production credit delivered over ten years to bridge the gap between the cost of producing renewable hydrogen and the market price.

Have you read?
Australian startup bags AU$20m to scale up next-gen electrolysers
Progress with growing pains: developing a global hydrogen ecosystem

ARENA and the Department of Climate Change, Energy, the Environment and Water (DCCEEW) designed the programme following consultation with a broad range of stakeholders, which involved 114 written submissions and three public forums with over 400 participants.

ARENA CEO Darren Miller said Hydrogen Headstart represents a step change in Australia’s renewable hydrogen efforts. “This is the Australian Government’s largest investment in renewable hydrogen to date and a critical step in unlocking Australia’s renewable energy superpower.”

Renewable hydrogen is a promising zero emissions energy vector and feedstock with the potential to transform Australia’s energy system, including in hard to abate sectors, but the emerging industry requires government support as it scales up.

ARENA has been instrumental in providing this support with early-stage research deployment projects through to first-of-a-kind deployments including hydrogen refuelling and hydrogen trucks, hydrogen for producing renewable ammonia, hydrogen for use in alumina refining and remote power.