The Government will provide $2.0 billion to accelerate the development of Australia’s hydrogen industry, catalyse clean energy industries, and help Australia connect to new global hydrogen supply chains.
The new $2.0 billion fund will be established under the name Hydrogen Headstart program.
While Hydrogen is not likely to play a role in the consumer transport industry, it is likely to have applications in reducing emissions in commercial and industrial applications. Hydrogen is one of the more controversial components of the plan to reduce Australia’s emissions with confusion around green vs blue hydrogen and much of the technology still in development.
This will provide revenue support for investment in renewable hydrogen production through competitive production contracts, including funding for the Australian Renewable Energy Agency and the Department of Climate Change, Energy, the Environment and Water to support the development and operation of the program.
Previously ARENA had co-invested in renewable energy solutions like electric vehicle charging infrastructure, community batteries, solar thermal projects and more (details at https://arena.gov.au/funding/).
ARENA will receive 4.2M in 2023/24, then 4.8M in 24/25, 4.7M in 25/26 and 4.8M in 26/27.
The Department of Climate Change, Energy, the Environment and Water will receive 7.3M this year, followed by 2.8M in 24/25, then it shrinks to 2.2M in 25/26, followed by an incredible jump to 151.2M in 2026/27. They obviously have some big plans in the outer years of this budget.
There’s also $5.6 million in 2023-24 going to analyse the implications for Australia of intensifying global competition for clean energy industry, and to identify actions before the end of 2023 to further catalyse clean energy industries, ensure Australian manufacturing competitiveness and attract capital investment.
Another $2.0 million over two years from 2024–25 to establish a fund to support First Nations communities to engage with hydrogen project proponents and planning processes. Funding for the Hydrogen Headstart program will be held in the Contingency Reserve.
