Australian Clean Hydrogen Industrial Hubs Program

May 10th, 2022

Australian Clean Hydrogen Industrial Hubs Program

The Australian Government has announced the development of up to seven clean hydrogen industrial hubs in regions of Australia, as well as design and development studies.

Main proponents:

Australian Government

 

Main end-use classification:

Export potential, domestic use

Status:

National funding program – funding available for feasibility studies and project roll-outs

Estimated cost:

 

Other involvement:

 

Production details:

To be evaluated as part of feasibility and other studies

Location:

Canberra, Australia

Funding program value:

AUD$464 million – Clean Hydrogen Industrial Hubs Program

Project description

This funding program, while not a ‘project’ per se, is included in HyResource to take account of its significant size and potential to support several hydrogen hub locations progressing to the next stages of the project life cycle.

Australia’s National Hydrogen Strategy was released in November 2019. The Strategy describes an adaptive approach to industry development (being ready to move quickly to scale up as signs of large-scale markets emerge) using a ‘review-revise-adapt’ feedback loop that would support and refine actions as technology and markets change.

A key element of the approach is the creation of hydrogen hubs – clusters of large-scale demand. The Strategy notes:

“These may be at ports, in cities, or in regional or remote areas, and will provide the industry with its springboard to scale. Hubs will make the development of infrastructure more cost-effective, promote efficiencies from economies of scale, foster innovation, and promote synergies from sector coupling. These will be complemented and enhanced by other early steps to use hydrogen in transport, industry and gas distribution networks, and integrate hydrogen technologies into our electricity systems in a way that enhances reliability.”

Through a series of measures, the Australian Government has allocated AUD$464 million to support the rollout of clean hydrogen industrial hubs across seven priority sites. The measures included:

  • In September 2020, AUD$54 million (of an announced AUD$70 million package) was directed to the creation of a hydrogen export hub
  • In April 2021, additional funding was announced, comprising AUD$20 million for hydrogen hub feasibility studies and AUD$240 million to support up to four additional hydrogen hubs
  • In September 2021, the funding allocated to developing clean hydrogen industrial hubs was boosted by an additional AUD$150 million, expanding the remit of the program to AUD$464 million. This will support the development of up to seven hubs in regions across Australia, as well as design and development studies.

The Clean Hydrogen Industrial Hubs grant rounds were conducted through stand-alone, open competitive selection processes.

In September 2021, Program guidelines for two grant programs to progress feasibility and design studies as well as the rollout of projects were made available (with the programs launched on 20 September 2021 and applications due 22 November 2021).

Hubs Funding Announcements

During April 2022 (and into May), a range of hubs funding announcements were made under the 2022 federal election caretaker arrangements:

Clean Hydrogen Industrial Hubs Program – Hubs Implementation Grants

  • Western Australian Government’s Pilbara Hydrogen Hub, WA – up to AUD$70 million
  • bp Australia’s H2Kwinana Clean Hydrogen Industrial Hub, WA –up to AUD$70 million
  • Stanwell Corporation’s Central Queensland Hydrogen Hub (CQ-H2 Hub), QLD – up to AUD$69.2 million
  • Port of Newcastle’s Port of Newcastle Hydrogen Hub, NSW – up to AUD$41 million
  • Origin Energy’s Hunter Valley H2 Hub, NSW – up to AUD$41 million
  • South Australian Government’s Port Bonython Hydrogen Hub, SA – up to AUD$70 million
  • Tasmanian Government’s Tasmanian Green Hydrogen Hub, TAS – up to AUD$70 million

Allocated funds under this stream – Up to ~AUD$430 million

Clean Hydrogen Industrial Hubs Program – Hub Development and Design Grants

  • ENGIE Pilbara Green Hydrogen Hub, WA – up to AUD$3 million
  • Santos Carnarvon Clean Hydrogen FEED, WA  – up to AUD$3 million
  • Ark Energy Han-Ho H2 Hub Feasibility Study, QLD – up to AUD$2.42 million
  • Origin Energy & ENEOS MCH Gladstone Project, QLD – up to AUD$1.25 million
  • Vena Energy Euroa Energy Project, QLD – up to AUD$3 million
  • Origin Energy Green Ammonia Project for Export (GRAPE) Bell Bay, TAS – up to AUD$3 million
  • INPEX Operations Darwin Clean Hydrogen Hub – Market Development Study, NT –  Up to AUD$1 million
  • Santos Moomba Clean Hydrogen FEED, SA – Up to AUD$3 million
  • Zero Degrees Rosella 1 La Trobe Valley Blue Hydrogen, VIC – up to AUD$2.98 million

Allocated funds under this stream – Up to ~AUD$23 million

Related announcements

Also under 2022 federal election caretaker arrangements, during April 2022, funding of up to AUD$70 million was announced for a clean hydrogen industrial hub at Darwin in partnership with the NT Government. This funding is part of the AUD$300 million Northern Territory package (Energy Security and Regional Development Plan) announced as part of the 2022/23 Budget. The Northern Territory package will support low emissions LNG and clean hydrogen production at Darwin, together with associated carbon capture and storage infrastructure.

Also under 2022 federal election caretaker arrangements, during April 2022, the option for establishment of a clean hydrogen hub in Townsville has been flagged.

Updated: May 2022