The Australian Government has announced a significant new investment in the Hydrogen Headstart Program, designed to accelerate the development of Australia’s large-scale renewable hydrogen industry. Administered by the Australian Renewable Energy Agency (ARENA), Round Two of Hydrogen Headstart is now open for applications, with up to $2 billion in funding available.
The Hydrogen Headstart Program provides revenue support for major renewable hydrogen projects through competitive hydrogen production contracts. It aims to bridge the commercial gap between the current cost of producing renewable hydrogen and its market price, enabling early projects to become commercially viable and attract private investment.
The program will support projects that produce hydrogen from renewable energy or derivative products such as ammonia or methanol. Successful applicants will receive production credits to offset the cost differential and help make renewable hydrogen competitive in domestic and export markets.
Key objectives of the investment include:
- Accelerating the development of Australia’s hydrogen industry.
- Catalysing clean energy industries and new supply chains.
- Unlocking jobs and investment potential across regional Australia.
- Supporting First Nations engagement, with a further $4 million provided to help communities participate in hydrogen project development.
Further information, including application guidelines and eligibility requirements for Hydrogen Headstart Round Two, is available at Hydrogen Headstart Round 2 – Australian Renewable Energy Agency (ARENA)
