Announced in the 2023-24 budget, the Hydrogen Headstart Program aims to be the driving catalyst in Australia’s hydrogen industry to take advantage of Australia’s unparalleled opportunity to be a global hydrogen leader.

In October 2023, the Australia government announced the opening of the Expression of Interest stage of the Hydrogen Headstart Program (the Program) to provide up to $2 billion of revenue support to support large-scale renewable hydrogen production projects. Australian Renewable Energy Agency ARENA, in collaboration with the Department of Climate Change, Energy, Environment and Water (DCCEEW), undertook a design and consultation process for the Program.

The Program will fund large-scale hydrogen production projects to accelerate development of Australia’s hydrogen industry, catalyse clean energy industries and help Australia connect to new global hydrogen supply chains to take advantage of hydrogen’s immense jobs and investment potential.

Under the Program, projects seeking to produce renewable hydrogen or derivatives, such as renewable ammonia or methanol, at scale can apply for a production credit delivered over ten years to bridge the commercial gap between the cost of producing renewable hydrogen and the market price.

image source: dcceew

A further $2 million over 2 years will be provided to support First Nations communities to engage with hydrogen project developers.

This funding is in addition to over half a billion dollars of Australian Government funding administered by the Department of Climate Change, Energy, the Environment and Water for regional hydrogen hubs in places such as the Hunter, Gladstone and the Spencer Gulf.

Minister for Climate Change and Energy, The Hon Chris Bowen MP said: “Renewable hydrogen is crucial to reach net zero, while creating economic opportunities for regional Australia.” “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.”

Korea and Japan Korea Electric Power Co’s little-known Newcastle project has made the list – which was whittled down from 60 applicants – as has Stanwell Corporation’s central Queensland project, in which Japanese firms Iwatani, Kansai Electric Power and Marubeni are foundation customers. (further reading in JAPAN section)

The 6 Shortlisted contenders are : bp Low Carbon Australia, HIF Asia Pacific, KEPCO (Korea) Australia, Stanwell Corporation, Murchison Hydrogen Renewables, Origin Energy Future Fuels.

Shortlisted applicants have until 27 June 2024 to submit their full application. The Australian Government intends to announce funding recipients in late 2024.