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$2 billion renewable hydrogen program reaches milestone

Dept of Climate Change, Energy, Environment & Water

The largest-ever Commonwealth funding program for renewable hydrogen is a step closer with the shortlisting of 6 applicants who could help transform Australia into a renewable energy superpower.

The shortlisted applicants will now be invited to submit full applications to access funding from the $2 billion Hydrogen Headstart Program that provides revenue support for large-scale renewable hydrogen projects.

The 6 shortlisted applicants are amongst the largest renewable hydrogen projects in the world and represent a total electrolyser capacity of more than 3.5 GW across various end uses.

Large-scale production of renewable hydrogen is critical to Australia becoming a global hydrogen leader and the broad spread of shortlisted projects reflects the many hydrogen opportunities in Australia.

Minister for Climate Change and Energy Chris Bowen said the shortlisting was a major milestone for the industry.

“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,” Minister Bowen said.

“Renewable hydrogen is crucial to reach net zero, while creating economic opportunities for regional Australia.”

Hydrogen Headstart will enable large-scale renewable hydrogen projects to get going by bridging the commercial gap between the cost of producing renewable hydrogen and the market price.

Hydrogen Headstart was announced in the 2023-24 May Budget and the Australian Government is investing in the program through the Australian Renewable Energy Agency (ARENA), which co-designed the program with the Department of Climate Change, Energy, the Environment and Water.

The Australian Government intends to announce Hydrogen Headstart funding recipients in the second half of next year.

The six shortlisted applicants are:

Applicant

Project

Electrolyser Size (MW)

State

bp Low Carbon Australia Pty Ltd

H2Kwinana

105

Western Australia

HIF Asia Pacific Pty Limited

HIF Tasmania eFuel Facility

144

Tasmania

KEPCO Australia Pty Ltd

Port of Newcastle Green Hydrogen Project

750

New South Wales

Origin Energy Future Fuels Pty Ltd

Hunter Valley Hydrogen Hub

Phase 1: 50

Phase 2: 200

New South Wales

Stanwell Corporation Limited

Central Queensland Hydrogen Project

720

Queensland

Murchison Hydrogen Renewables Pty Ltd as trustee for Murchison Hydrogen Renewables Project Trust

Murchison Hydrogen Renewables Project

1,625

Western Australia

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