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Green Hydrogen H2 News

Australia’s A$2 Billion Project Receives Applications

Arnes BiogradlijaBy Arnes Biogradlija19/10/20232 Mins Read
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The government’s A$2 billion Hydrogen Headstart program, managed by the Australian Renewable Energy Agency (ARENA), aims to bridge the cost gap between green hydrogen production and market prices, propelling Australia’s renewable hydrogen ambitions to new heights.

According to ARENA, renewable hydrogen has the potential to revolutionize Australia’s industries, particularly hard-to-abate sectors like chemicals, steelmaking, and transportation. However, government support is crucial to achieve the scale required for widespread adoption.

The Hydrogen Headstart program will provide financial support to large-scale renewable hydrogen or derivative production projects. Successful applicants will receive a production credit spread over ten years, effectively incentivizing the transition to green hydrogen.

The program’s design involved extensive consultations with key stakeholders, including 114 written submissions and three public forums with over 400 participants, ensuring a comprehensive approach to addressing industry needs.

Darren Miller, CEO of ARENA, underscores the significance of Hydrogen Headstart, calling it a “step change” in Australia’s renewable hydrogen efforts. He highlights the program as the largest government investment in renewable hydrogen to date, emphasizing its role as a “critical step in unlocking Australia’s renewable energy superpower.”

Australia’s abundant renewable energy resources position the country favorably to become a global leader in the renewable hydrogen industry. With other countries ramping up their hydrogen ambitions, Australia’s A$2 billion investment is a strategic move to maintain competitiveness in the global hydrogen race.

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