The Australian Renewable Energy Agency (ARENA) has announced on behalf of Australia** that six green hydrogen projects have been selected from the Hydrogen Headstart project, totalling more than 35GW of production capacity, 2 billion Australian dollars, about 13$500 million in subsidies. making it one of the largest renewable hydrogen projects in the world.
The final projects that will be subsidized are expected to be announced by the end of 2024 and will receive Hydrogen Production Credits (HPC) – hydrogen production credits, with a ten-year quarterly grant starting in 2027.
There is no fixed amount for HPC's subsidy scale, and developers are required to provide a dollar value per kilogram of hydrogen (or one of its derivatives) to reflect the gap between green and grey hydrogen. At the same time, the project's ** life cycle production is also required to set the maximum amount of funding.
Applicant: BP Low Carbon Australia Pty Ltd
Project name: H2KWINANA
Electrolyzer capacity (MW): 105
State: Western Australia.
End Use: Ammonia, Sustainable Aviation Fuel, Mineral Processing.
Applicant: HIF Asia Pacific Pty Limited
Project: HIF Tasmania eFuel Facility.
Electrolyzer capacity (MW): 144
State: Tasmania.
End Use: e-fuels
Applicant: Kepco Australia Pty Ltd
Project: Newcastle Port Green Hydrogen Project.
Electrolyzer capacity (MW): 750
State: New South Wales
End Use: Ammonia.
Applicant: Origin Energy Future Fuels Pty Ltd (Utilities in Sydney
Project: Hunter Valley Hydrogen Hub.
Electrolyzer capacity (MW): Stage 1 50 Stage 200
State: New South Wales.
End Uses: Ammonia, Transportation.
Applicant: Stanwell Corporation Limited
Project: Central Queensland Hydrogen Project.
Electrolyzer size (mw): 720
State: Queensland
End Use: Ammonia.
Applicant: Murchison Hydrogen Renewables Pty Ltd as trustee of the Murchison Hydrogen Renewables Project Trust
Project name: Murchison Hydrogen Renewables Project (funded by Denmark's Copenhagen Infrastructure Partners, an infrastructure partner based in Copenhagen, Denmark).
Electrolyzer scale (mw): 1625
State: Western Australia.
End Use: Ammonia.
The projects being developed by these applicants involve the deployment of large electrolyzers of at least 50 MW in size, with a significant and faster impact on the implementation of a new renewable hydrogen industry. Shortlisted applicants are developing projects in Queensland, New South Wales, Tasmania and Western Australia.
The Hydrogen Lead Programme, announced in the 2023-24 Budget, aims to advance Australia's hydrogen industry to take advantage of Australia's unrivalled opportunities to become a global hydrogen leader.
Under the program, projects seeking to produce renewable hydrogen or derivatives (such as renewable ammonia or methanol) on a large scale can apply for a ten-year loan to bridge the commercial gap between the cost of producing renewable hydrogen and the market**.
The Hydrogen Headstart will boost confidence in the emerging renewable hydrogen industry, sending a strong signal that Australia is an attractive investment destination for renewable hydrogen production and infrastructure related to end use cases.
Arena chief executive officer Darren Miller said the strong interest in the scheme showed that project developers were increasingly confident in Australia's potential to host this important new industry.
Hydrogen First is a key step in putting Australia on the path to becoming a global leader in hydrogen, creating new export opportunities while helping to decarbonise our economy. ”
Hydrogen Headstart builds on Arena's success as a leader in renewable hydrogen, with the agency committing more than 48 renewable hydrogen projects since 2017$1.5 billion. Funding is supported by more than half a billion Australian dollars** managed by Australia's Department of Climate Change, Energy, Environment and Water for regional hydrogen hubs in Hunter, Gladstone and Spencer Bay.
Arena was instrumental in the early development of Australia's renewable hydrogen industry. Support for renewable hydrogen covers early-stage R&D projects, including hydrogen fueling and hydrogen-fueled vehicles, hydrogen for the production of renewable ammonia, hydrogen for alumina refining and remote power supply.
The Honourable Chris Bowen MP, Minister for Climate Change and Energy, said: "Renewable hydrogen is essential to achieving net zero emissions while creating economic opportunities for regional Australia.
We have the world's largest pipeline of renewable hydrogen projects – and as Australia transforms into a renewable energy superpower, Hydrogen Headstart aims to support these projects to become a reality. ”
Shortlisted applicants must submit a completed application by June 27, 2024. Australia** plans to announce funding recipients by the end of 2024.
Well-known Australian hydrogen developers Fortescue and Intercontinental Energy were expected to participate in the application, but were unsuccessful.