Australia to Provide $2 Billion for Green Hydrogen

Australia earmarks $2 billion for green hydrogen The Australian Government announced the establishment of the Hydrogen Headstart initiative, a $2 billion program designed to support the largest green hydrogen projects to be built in Australia. Funding will provide revenue support for investment in renewable hydrogen production through competitive production contracts. The funding will cover the commercial gap between the cost of hydrogen production from renewable sources and prevailing market prices. Hydrogen Headstart aims to provide support for two or three pioneer projects capable of delivering 1 gigawatt of hydrogen electrolyzer capacity. ARENA (Australian Renewable Energy Agency) has allocated $4.2 million in collaboration with DCCEEW (Department of Climate Change, Energy, Environment and Water) this year to support program development and operation. ARENA CEO Darren Miller said: "Hydrogen Headstart will mobilize Australia's hydrogen industry and other clean energy sectors and position Australia as a global hydrogen leader." The program will be designed over the coming months through consultation with DCCEEW, industry and communities. Miller said the Hydrogen Headstart initiative would enable large-scale hydrogen projects currently in development to commence in Australia. "Australia has a unique opportunity to become a global green hydrogen leader, but we cannot afford to lose momentum as competing countries increase their targets and support," he said. "With this funding, we aim to encourage green hydrogen production from renewable electricity in Australia and provide support for early projects that will be among the world's largest. "This funding will reduce the cost of green hydrogen and scale our hydrogen sector. These projects will create thousands of regional jobs and help reduce industrial emissions in line with our climate targets," he said. According to new McKinsey analysis and DCCEEW modelling, Australia's hydrogen industry could generate an additional AUD 50 billion in GDP by 2050 and create over 13,000 regional jobs from new renewable energy infrastructure construction and an additional 13,000 jobs. This program builds on successful delivery of transformation projects in the energy transition towards net zero targets and current work in the hydrogen field. ARENA has supported 43 renewable hydrogen projects totalling over $236 million, ranging from early-stage research to deployment projects including hydrogen refuelling for fuel cell trucks, hydrogen for green ammonia production, hydrogen in alumina refining, gas blending and remote power. Last year, ARENA provided conditional approval of $47.5 million for the first 10 MW electrolyzer facility built by ENGIE in the Pilbara and part of the $103 million Renewable Hydrogen Deployment Tour. ARENA has also recently announced $25 million for hydrogen research and development funding and $50 million for four hydrogen projects supported under the Australia-Germany HyGATE initiative. Having provided over $2 billion for over 650 renewable energy projects over the past decade, ARENA is now focusing on how Australia can maximize its renewable energy advantage and become a clean energy superpower in a net zero global economy. "ARENA is pleased to have been involved in designing this game-changing hydrogen funding initiative." Further information will be available on ARENA's website. Interested participants can register their interest through DCCEEW's website.   Source