Australia allocates $1.4b for hydrogen development

The funding will also cut the cost of green hydrogen production.

The Australian Government has established around $1.4b (A$2b) funding for the Hydrogen Headstart initiative under the 2023-24 Federal Budget to support the development of the biggest green hydrogen projects in the country.

In a statement, the Australian Renewable Energy Agency (ARENA) the funding support investment in renewable hydrogen production through competitive production contracts and will address the commercial gap in the cost of production from renewables and the current market price.

“Hydrogen Headstart will catalyse Australia’s hydrogen industry and other clean energy industries, and help position Australia as a global hydrogen leader,” ARENA CEO Darren Miller said,” said ARENA CEO Darren Miller.

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“This funding will reduce the cost of green hydrogen produced via renewable electricity and will scale up our hydrogen sector. These projects will create thousands of regional jobs and will help reduce emissions in the industry in line with our climate targets,” he said.

ARENA was provided with $2.8m (A$4.2m) funding this year to bolster programmes’s development and operation in consultation with the Department of Climate Change Energy Environment and Water.

$1 = A$1.48