Businesses on board Government's push into hydrogen
The Morrison Government’s drive to build a clean and competitive hydrogen industry continues to gain momentum.
Seven companies have progressed to the next stage of the Australian Renewable Energy Agency’s (ARENA) $70 million Renewable Hydrogen Deployment Funding Round.
The shortlisted applicants are:
- APT Management Services Pty Limited
- ATCO Australia Pty Ltd
- Australian Gas Networks Limited
- BHP Billiton Nickel West Pty Ltd
- Engie Renewables Australia Pty Ltd
- Macquarie Corporate Holdings Pty Limited
- Woodside Energy Ltd.
Minister for Energy and Emissions Reduction Angus Taylor said that the Government’s partnership with industry will 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,” Minister Taylor said.
“The total grant asks for the shortlisted projects is over $200 million, and with a total project value of almost $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’.
Hydrogen at or under $2 per kilogram is the point where it becomes competitive with alternatives in large-scale deployment across our energy systems.
“This round, along with the Clean Energy Finance Corporation’s (CEFC) $300 million Advancing Hydrogen Fund, will be key to bringing down the production costs of hydrogen and making the technology commercial,” said Minister Taylor.
ARENA received 36 expressions of interest in the initial application stage for the Renewable Hydrogen Deployment Funding Round.
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.
In total, the Government has now made available over $500 million in support for hydrogen projects since 2015.
Released in late 2019, the National Hydrogen Strategy aims to support an emerging industry to become a major global player by 2030 with exports to energy markets such as the Republic of Korea, Japan and Singapore.
Minister Taylor's office - 6277 7120