Unlocking large-scale renewable hydrogen production in Australia

Consultation is now open on the design of the Albanese Government’s $2 billion Hydrogen Headstart program to support new large-scale renewable hydrogen projects in Australia.

The program will build domestic hydrogen experience and expertise and help Australia connect to new supply chains to help Australia become a renewable energy superpower.

Building these capabilities at home is vital for positioning Australian industry to take advantage of future jobs and investment potential. A large-scale hydrogen industry could create more than 16,000 jobs in regional Australia and a further 13,000 jobs in renewable energy infrastructure.

We are seeking feedback from stakeholders on the design of the competitive process to select large scale, Australian-based renewable hydrogen projects where public investment can bridge the commercial gap.

Successful projects under the program will receive revenue support over 10 years, to help boost private investment.

Minister for Climate Change and Energy Chris Bowen said scaling up production of renewable hydrogen was vital for achieving Australia’s ambition to become a renewable energy superpower.

“A renewable hydrogen industry in Australia will ensure we are in the race to become a global energy powerhouse, ensuring Australia’s regions continue to power Australia and the world for decades to come,” Minister Bowen said.

“The $2 billion Hydrogen Headstart program puts Australia on course for up to a 1000 megawatts of electrolyser capacity by 2030. This will be a major step up for Australia’s industry. The largest electrolyser projects that have reached final investment decision so far are at 1 to 10 megawatts in scale.

“Hydrogen Headstart is a key step towards unlocking an estimated $300 billion in private investment in Australian renewable hydrogen.

“Working with industry experts and stakeholders to design the program means we can maximise the success of Australia’s renewable hydrogen future.”

Public consultation forums will be held in July with further details here: Hydrogen Headstart program – DCCEEW.

The consultation paper is available at https://consult.dcceew.gov.au/hydrogen-headstart-program-consultation and submissions can be made from now until Thursday 3 August 2023.