The Australian Renewable Energy Agency (ARENA) has announced the opening of a second round of funding as part of the Hydrogen Headstart Program, with up to $2 billion in funding available to accelerate the development of large-scale renewable hydrogen projects.
This funding round will build on the lessons learned from the first round, with a renewed focus on supporting projects that target high priority use cases, as well as projects that look at ways to reduce the cost of renewable hydrogen production in the long-term.
ARENA is seeking proposals that improve green hydrogen production efficiency and plant design to cut capital costs, enable more flexible operations to lower renewable electricity costs and/or strengthen end-use infrastructure in sectors such as green ammonia, iron and steel, alumina, shipping, aviation and long-haul heavy transport.
In the first round of funding, a $432 million project in Orica’s Hunter Valley Hydrogen Hub was announced; the hub will replace a major ammonia manufacturer’s reliance on gas with green hydrogen at its Kooragang Island operation in NSW.
Arena CEO Darren Miller said that Hydrogen Headstart is about unlocking innovation, shaping new supply chains and helping to cement Australia’s role in the global energy transition.
“ARENA is aiming to bridge the gap between ambition and reality. We know that renewable hydrogen will play a critical role in decarbonising heavy industry, particularly in sectors where electrification is not feasible or alternatives are limited,” said Miller.