The Australian Renewable Energy Agency (ARENA) has opened industry consultation for Round 2 of the Hydrogen Headstart program, inviting stakeholder feedback on proposed program design, eligibility criteria, and revenue support mechanisms. With A$2 billion in funding announced in the May 2024 Federal Budget, this second round focuses on supporting large-scale renewable hydrogen projects, offering a chance for industry leaders to shape the initiative, and submissions close July 31, 2025.

The Australian Renewable Energy Agency (ARENA) has opened consultations for the second round of funding under the government-backed Hydrogen Headstart programme.

ARENA is inviting feedback and input from industry stakeholders on how the second round of the government initiative should work, while also inviting submissions of project ideas for funding consideration.

The programme is designed to “fast-track Australia’s renewable hydrogen industry” by supporting large-scale hydrogen projects, which will strengthen the nation’s industrial competitiveness and clean energy exports.

The Australian government first announced the second round in the May 2024 Federal Budget. If stakeholders plan to provide feedback or project submissions, they’re required to do so by July 31, 2025.

“To achieve Australia’s emissions reduction targets, renewable hydrogen will play a key role in heavy industry, particularly where electrification isn’t possible,” ARENA stated online.

“Early-stage investment will support early movers in the Australian renewable hydrogen industry and help remove barriers to entry.”

Orica’s 50MW green hydrogen hub in Newcastle, New South Wales, was awarded AUD 432m ($283m) in 10-year production credits last week (July 4) through the Hydrogen Headstart programme.

Projects that have applied to Hydrogen Headstart are evaluated by ARENA and the Department of Climate Change, Energy, Environment, and Water for the actual cost of producing green hydrogen and what customers are willing to pay.

Successful projects, such as Orica’s Hunter Valley Hydrogen Hub (HVHH), are awarded a performance-based, 10-year production credit contract.

HVHH plans to install a 50MW renewable energy-powered electrolyser in Newcastle, New South Wales, and supply hydrogen to Orica’s existing 360,000 tonne ammonia plant on Kooragang Island.