The Australian Renewable Energy Agency (ARENA) has launched the second round of its landmark Hydrogen Headstart Program, making up to $2 billion in funding available to accelerate the development of large-scale renewable hydrogen projects across the country.
Building on lessons learned from the first round, the initiative has a renewed focus on supporting projects that target high-priority use cases and on advancing strategies to lower the long-term cost of renewable hydrogen production.
This round will welcome submissions from a diverse range of projects, including those aimed at innovative plant construction and design to reduce capital costs, improving the efficiency of electrolysers, adopting flexible operations and other methods to lower the cost of renewable electricity, and enhancing end-use infrastructure in priority sectors.
These sectors include hydrogen applications for green ammonia, iron and steel, alumina production, and long-distance heavy transport such as aviation and shipping.
ARENA CEO Darren Miller said that Hydrogen Headstart is about unlocking innovation, shaping new supply chains and helping cement Australia’s position in the global energy transition.
“ARENA is aiming to bridge the gap between ambition and reality,” said Miller.
“We know that renewable hydrogen will play a critical role in decarbonising heavy industry, particularly in sectors where electrification is not feasible or alternatives are limited.”
Miller said achieving commercial-scale renewable hydrogen production would require sustained innovation and long-term support, adding that by backing industry first-movers, ARENA was helping provide the certainty needed to invest, advance new projects, and share future learnings.
Over the past eight years, ARENA has invested more than $370 million in 65 renewable hydrogen projects, as well as two projects under the first Hydrogen Headstart funding round.
This support has ranged from early-stage research to first-of-a-kind deployments, delivering valuable insights and creating opportunities for Australia’s emerging hydrogen industry.
Hydrogen Headstart Round 2 is now open for expressions of interest.
Program guidelines and further information are available via ARENA’s funding page.
