PERTH (miningweekly.com) – The federal government’s A$2-billion Hydrogen Headstart programme is now open for applications.

Announced in the 2023/24 budget, the programme aims to catalyse Australia’s hydrogen industry to take advantage of Australia’s unparalleled opportunity to be a global hydrogen leader.

Projects seeking to produce renewable hydrogen or derivatives at scale can apply for a production credit delivered over ten years to bridge the gap between the cost of producing renewable hydrogen and the market price.

Minister for Climate Change and Energy Chris Bowen said Hydrogen Headstart would be a game changer in the development of Australia’s renewable hydrogen industry.

“Large-scale production of renewable hydrogen is critical to Australia reaching our potential as a renewable energy superpower, adding A$50-billion to our gross domestic product and creating over 16 000 jobs by 2050.”

“Australia already has the largest pipeline of renewable hydrogen projects in the world. Our regions have the resources, technical skills and key trade partnerships to drive growth in hydrogen and other clean industries, as well as the jobs that come with it.

“Hydrogen Headstart is about realising the potential of that pipeline and making sure Australia is in the race.

"This landmark investment in Hydrogen Headstart will help keep Australia on the path to be a global hydrogen leader by 2030, harnessing our huge renewable energy resources to support a new industry in Australia," the Minister said.

"Australia has a massive potential competitive advantage in the manufacturing and export of green hydrogen, with our abundant renewable energy resources like solar and wind.

"Green hydrogen is also a critical enabler for future manufacturing of green metals and other products the world needs as the transformation to net zero by 2050 gathers pace.

Hydrogen Headstart was co-designed by the Australian Renewable Energy Agency (Arena) and the Department of Climate Change, Energy, the Environment and Water. It builds on over half-a-billion dollars of investment by the federal government in regional hydrogen hubs including in Pilbara, Kwinana, Gladstone, Townsville, the Hunter, Bell Bay and Upper Spencer Gulf.

Arena CEO Darren Miller said Hydrogen Headstart represented a step change in Australia’s renewable hydrogen efforts.

“Arena has been there at every step of Australia’s hydrogen journey, and we’re thrilled to be delivering this transformative programme,” Miller said.

“With Australia’s abundant renewable energy resources, we’re well placed to be a global leader in the renewable hydrogen industry.”

“As other countries step up their ambitions, Australia is meeting the challenge and providing the investment we need to stay competitive in the global hydrogen race. This is the Australian government’s largest investment in renewable hydrogen to date and a critical step in unlocking Australia’s renewable energy superpower.”

Hydrogen Headstart will be administered by Arena, with expressions of interest open until November 10. The proponents of shortlisted projects will then be invited to develop full applications.