Hydrogen Headstart
Background
In the May 2023 Federal Budget, the Australian Government announced the establishment of Hydrogen Headstart, a $2 billion budget measure to scale up large scale green hydrogen in Australia.
Hydrogen Headstart will underwrite the biggest green hydrogen projects to be built in Australia through a competitive process which will provide revenue support for ongoing operational costs in the form of a production credit.
Funding will bridge the commercial gap between the cost of hydrogen production from renewables and its current market price for early projects.
Hydrogen Headstart aims to support two to three flagship large scale projects which could deliver up to a gigawatt of electrolyser capacity by 2030.
The program aims to catalyse the hydrogen sector, unlock further investment and improve the competitiveness of green hydrogen and its derivatives in Australia.
In doing so, Hydrogen Headstart will position Australia as an early mover and global leader in the hydrogen.
How it works
We have been allocated $4.2 million in the Federal Budget to support the development of the program in consultation with the Department of Climate Change Energy Environment and Water.
Further information including guidelines will be released following further consultation and program design, and will be updated here.
Expressions of interest are expected to open in early 2024. Successful projects will be awarded contracts with ongoing payments over a 10 year period from 2026-2027.
The program will be developed over coming months in consultation with industry and communities.
Register your interest
To register your interest, visit the Department’s website.
Further reading
For further queries related to hydrogen funding, please contact hydrogen@arena.gov.au
- Department of Climate Change Energy Environment & Water’s Hydrogen Budget Measure.
- National Hydrogen Strategy.
- For further information about ARENA’s hydrogen funding opportunities visit the Hydrogen R&D Program which is currently open, as well as HyGATE and Renewable Hydrogen Deployment Round.
