Renewable hydrogen is a decarbonisation solution for energy uses that are not well suited to electrification. It is produced from energy generated from renewable sources such as solar and wind. Hydrogen, and its derivatives such as ammonia, can be combusted to produce heat, used as a fuel in transport, used as a chemical feedstock, and stored and transported for long periods and distances.
ARENA is currently focused on supporting projects that help deliver to the following objective: Create a viable renewable hydrogen industry.
1. Create a viable renewable hydrogen industry
ARENA’s ambition is to support industry to find innovative solutions that can unlock a viable renewable hydrogen industry in Australia and realise our potential as an exporter of renewable hydrogen or zero emissions products in the long term. This will require innovation and support across the full hydrogen value chain, including firmed renewable electricity, a step change in electrolyser technology, and rapid proving and scaling of hydrogen production and end uses.
- 1.1 Reduce LCOH of renewable hydrogen
Reduce the cost of renewable hydrogen production through technologies and commercial innovations that unlock increasing scale in hydrogen production, improve hydrogen production efficiency, and materially lower electrolyser capex and operating costs.
ARENA is looking to support projects that achieve a reduction in the farmgate levelised cost of hydrogen production, through a focus on:
- Large scale electrolyser deployment in priority end use cases to drive cost reductions through scale
- R&D/pilot/demonstration for innovations that can improve hydrogen production efficiency or reduce capital or operating costs.
While reducing the cost of electricity per kWh can have a material impact on the cost of hydrogen, this is not a focus here – please refer to ARENA’s Electricity Transition priority.
- 1.2 Reduce delivery cost of hydrogen
Demonstrate technologies that address technical challenges along the rest of the hydrogen value chain, including storage, compression and transport (including for hydrogen carriers).
ARENA is looking to support projects that assist with demonstrating and de-risking tech pathways to deliver hydrogen supply to end users, including transportation, compression, storage and end uses.
- 1.3 Demonstrate and scale use of renewable hydrogen
Test the technical feasibility and commercial viability of renewable hydrogen use cases. This includes ammonia production, new industrial feedstock and energy applications, heavy vehicles and other modes of transport, power generation and export.
ARENA is looking to support projects across a variety of end use cases, including:
Ammonia
Large-scale deployments of renewable hydrogen in ammonia production.
Other industrial energy and feedstock
Demonstrations of the use of renewable hydrogen in critical new industrial applications, with a focus on those not suited to electrification, including alumina calcination, steelmaking and other high temperature process heat.
Transport
Demonstrations of the use of renewable hydrogen and derivatives in transport, with a focus on medium-heavy on- and off-road land transport, shipping and aviation.
Power generation
Demonstrations of the ability of renewable hydrogen to support power generation, including seasonal energy storage, off-grid power and backup power applications.
Export
Demonstrations of opportunities for export of renewable hydrogen, hydrogen derivatives, and other decarbonised products.