PERTH (miningweekly.com) – Seven companies, including major BHP’s Nickel West division and oil and gas major Woodside, have progressed to the next stage of the federal government’s Australian Renewable Energy Agency’s (Arena’s) A$70-million Renewable Hydrogen Deployment funding round.

Arena initially received 36 expressions of interest for hydrogen projects, worth a combined A$3-billion.

These applications have now been whittled down to seven projects vying for funding to build the first commercial scale hydrogen project in Australia.

Minister for Energy and Emissions Reduction Angus Taylor said that the government’s partnership with industry would help Australia become a world leader in hydrogen production and exports, which will importantly create new jobs as the Australian economy recovers from Covid-19.

“The government is committed to building a world-class hydrogen industry and this Arena funding round is central to that,” Taylor said.

“The total grant asks for the shortlisted projects is over A$200-million, and with a total project value of almost A$500-million. This strong interest from industry reinforces Australia’s untapped potential in hydrogen and today’s announcement moves us closer to realising that potential.”

All applicants have well-developed projects that involve deploying 10 MW, or larger, electrolysers to produce hydrogen for various end-uses including transport, renewable ammonia production, power and industrial use.

The Arena funding aims to support two or more large-scale hydrogen projects to demonstrate electrolysis and associated renewable hydrogen technologies at scale.

The Renewable Hydrogen Deployment funding round will build momentum in deployment of clean hydrogen in Australia. By driving down the costs associated with producing renewable hydrogen, industry will be closer to achieving the government’s first goal under the Technology Investment Roadmap of ‘H2 under $2’.

“This round, along with the Clean Energy Finance Corporation’s (CEFC) A$300-million Advancing Hydrogen Fund, will be key to bringing down the production costs of hydrogen and making the technology commercial,” said Taylor.

The seven projects shortlisted are invited to submit a full application in the next stage and may also be considered for financing from the CEFC.

Arena expects to announce successful projects through the Renewable Hydrogen Deployment funding round by the end of 2020.

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