The new AUD 300 million funds created by the Government will finance projects concentrated on growing a clean, innovative, and competitive hydrogen industry in Australia. It is the Australian Government’s first financing fund that is dedicated to hydrogen projects.
May 04, 2020. By News Bureau
The Liberal National Government is supporting Australia to become a world leader in hydrogen production and exports by establishing the Advancing Hydrogen Fund. The new AUD 300 million fund created by the Government will finance projects concentrated on growing a clean, innovative and competitive hydrogen industry in Australia. It is the Australian Government’s first financing fund that is dedicated to hydrogen projects.
The Fund will back projects that align with priorities under the National Hydrogen Strategy. This includes areas such as advancing hydrogen production, developing export and domestic supply chains, establishing hydrogen hubs and backing projects that build domestic demand for hydrogen. The Advancing Hydrogen Fund will be administered by the Clean Energy Finance Corporation (CEFC) and will provide concessional finance for projects that will support a national hydrogen industry.
Energy and Emissions Reduction Minister Angus Taylor said the Advancing Hydrogen Fund met a commitment in the National Hydrogen Strategy, launched at the COAG Energy Council meeting in November last year to build Australia’s hydrogen industry into a global export industry by 2030.
“The Australian Government has a strong commitment to building a hydrogen industry which will create jobs, many in regional areas, and billions of dollars in economic growth between now and 2050,” said Taylor. “Importantly, if we can get hydrogen produced at under $2 a kilogram, it will be able to play a role in our domestic energy mix to bring down energy prices and keep the lights on.
“Our hydrogen industry has the ability to make a tremendous positive impact both at home and overseas. From cheaper energy bills and job creation in regional Australia to play a role in reducing global emissions both at home and in countries that buy Australian produced hydrogen, the industry’s potential cannot be ignored,” he added.
Minister Taylor also noted that according to Bloomberg New Energy Finance, this AUD 300 million fund, along with the recently opened AUD 70 million Renewable Hydrogen Deployment Funding Round administrated by the Australian Renewable Energy Agency (ARENA), is one of largest commitments to the hydrogen sector made by any government in the world.
The Government has set an economic goal for hydrogen of ‘H2 under 2’ – that is hydrogen at or under $2 per kilogram – the first technology goal in the Technology Investment Roadmap. That’s the point where hydrogen becomes competitive with alternative energy sources in large-scale deployment across the energy systems. This goal is essential to drive down the cost of new technologies, and the Advancing Hydrogen Fund will help to achieve this price point.
In total, the Australian Government has now made available over AUD 500 million in support for hydrogen projects since 2015.
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