Australian budget earmarks USD 1.4bn for hydrogen scheme

In its 2023/24 budget on Tuesday, the Australian government announced AUD 2 billion (USD 1.35bn/EUR 1.23bn) in funding for the creation of a new Hydrogen Headstart scheme.

The scheme will provide revenue support for investment in renewable hydrogen production through competitive production contracts.

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The Australian Renewable Energy Agency (ARENA) said that Hydrogen Headstart will seek to back two to three flagship projects which could deliver up to 1 GW of hydrogen electrolyser capacity.

ARENA has been allocated AUD 4.2 million this year to develop the programme in consultation with the Department of Climate Change Energy Environment and Water (DCCEEW).

According to the agency’s chief executive Darren Miller, the initiative will allow large-scale hydrogen projects already in development to take off. “Hydrogen Headstart will catalyse Australia’s hydrogen industry and other clean energy industries, and help position Australia as a global hydrogen leader,” he commented.

Renewable energy association Clean Energy Council said: “This is a substantial downpayment on Australia’s response to the United States Inflation Reduction Act, ensuring Australia remains in the race to become a global clean energy superpower.”

Overall, the budget invests AUD 4 billion, including the AUD 2 billion hydrogen funding, in Australia's ambition to become a renewable energy superpower.

The budget measures also include AUD 1 billion for the Clean Energy Finance Corporation to provide finance for home electrification and energy upgrades.

(AUD 1 = USD 0.676/EUR 0.617)