Victoria

Victoria – Hydrogen Industry Policy Initiatives

RENEWABLE HYDROGEN INDUSTRY DEVELOPMENT PLAN

In 2021, the Victorian Government launched the Victorian Renewable Hydrogen Industry Development Plan (‘the Plan’). Its goal is to stimulate initial investment, employment, innovation, economic growth, and support Victoria’s renewable energy transition.Front Cover Image VRHIDP

ACCELERATING VICTORIA’S HYDROGEN INDUSTRY (AVHI) PROGRAM

Along with the Plan, the Victorian Government announced the Accelerating Victoria’s Hydrogen Industry (AVHI) Program to support policy and industry development and research. In 2021 the Victorian Government announced two new grant programs under the banner of the AVHI:

In 2022, the Victorian Government announced recipients under the above funding programs:

  • Renewable Hydrogen Commercialisation Pathways Fund: more than AUD$5 million to support five projects through this fund.
  • Renewable Hydrogen Business Ready Fund: more than AUD$600,000 shared by eight recipients through this fund.

VICTORIAN REGIONAL HYDROGEN TECHNOLOGY CLUSTERS

In partnership with National Energy Resources Australia (NERA), the Victorian Government has provided AUD$635,000 to support the four Victorian Regional Hydrogen Technology Clusters over 2021-22 and 2022-23. The Clusters help build capabilities and drive industry collaboration across the hydrogen value chain. They are located in Gippsland, Greater Geelong, Mallee and Clayton (Melbourne).  The Victorian Hydrogen Cluster Network was established to support the growth and coordination of these clusters. Both NERA and the Greater Geelong cluster ceased operations in 2023, while the Victorian government continues to engage with the remaining Victorian clusters in Gippsland, Clayton and the Mallee.

HYDROGEN PARK MURRAY VALLEY

In June 2023, the Australian Renewable Energy Agency (ARENA) committed AUD$36.1 million from its Renewable Hydrogen Deployment Fund and the Victorian Government committed AUD$12.3 million to Hydrogen Park Murray Valley, a project led by the Australian Gas and Infrastructure Group (AGIG) for a 10-megawatt (MW) electrolyser co-located with North East Water’s wastewater treatment plant in Wodonga. The Clean Energy Finance Corporation (CEFC) is providing additional financial backing. The groundbreaking (turning of first soil) for the project occurred in October 2024 with operations anticipated in 2025.

CLIMATE CHANGE STRATEGY AND ZERO EMISSIONS VEHICLE (ZEV) ROADMAP

In 2021, the Victorian Government launched its Climate Change Strategy and Zero Emissions Vehicle (ZEV) Roadmap. The roadmap includes battery and hydrogen powered electric vehicles and is supported by a AUD$100 million ZEV package to fast track the transition to ZEVs. The ZEV support package includes the following programs open to hydrogen:

  • AUD$46 million for Australia’s first public ZEV subsidy program, supporting Victorian residents and businesses to purchase new ZEVs (closed to new applications as of May 2024).
  • AUD$20 million to fund a ZEV public transport bus trial, with a target for all public transport bus purchases to be ZEVs from 2025.
  • AUD$10 million for the replacement of the Victorian Government Fleet with ZEVs.
  • AUD$5 million to establish a Commercial Sector ZEV Innovation fund.

GAS SUBSTITUTION ROADMAP

In July 2022, the Victorian Government released a Gas Substitution Roadmap. The roadmap outlines the paths by which energy efficiency, electrification, hydrogen and biogas can contribute to carbon emissions reductions in the State. The Roadmap outlines that alternative gases such as hydrogen and biomethane will be essential to reach net zero emissions.

In October 2023, submissions closed for Victoria’s Renewable Gas Consultation paper which sought input to help design policy that could best support the efficient and effective use of renewable gas in Victoria.  Building on this consultation, and in response to stakeholder feedback, on 9 December 2024, the government released Victoria’s Industrial Renewable Gas Guarantee Directions Paper, outlining the government’s preferred policy direction.

HYCEL TECHNOLOGY HUB

The Victorian Government has invested AUD$9 million (alongside AUD$9 million in Commonwealth Government funding) to establish the Hycel Technology Hub – a 2,200m² bespoke hydrogen research, testing and training facility located at Deakin University’s Warrnambool campus in Victoria’s south-west. The Hycel Technology Hub was officially opened in October 2024.

VICTORIAN HYDROGEN HUB

The Victorian Government provided AUD$10 million for the Victorian Hydrogen Hub (VH2), led by Swinburne University of Technology in partnership with CSIRO and Germany’s ARENA 2036. The Victorian Hydrogen Hub and CSIRO launched a hydrogen refuelling station in late 2023 at the CSIRO Clayton site in Melbourne. VH2 also delivers strategic research for industry partners and has set the framework for adopting new hydrogen skill sets through the testing, trialling, and demonstration of new and emerging hydrogen technologies, while its Hydrogen Skills Roadmap is helping inform about the training and resources required for hydrogen industry development.

AIR HUB

The Victorian Government provided AUD$12 million to support Swinburne University of Technology’s Aerostructures Innovation Research Hub (AIR Hub). Amongst other things, the AIR Hub is also supporting research and development for hydrogen storage tanks on aircraft and eVTOL vehicles.

UNIVERSITY OF MELBOURNE’S ZERO EMISSIONS ENERGY (ZEE) LAB

The Victorian Government provided AUD$4.7 million for the University of Melbourne’s Zero Emissions Energy (ZEE) Lab. The ZEE Lab enables the university to work with industry to develop a range of clean energy products across the hydrogen and solar fields, including new methods for hydrogen gas processing, novel hydrogen fuel systems for engine-based power generation, and transport; and a new, low-cost electrolyser for producing green hydrogen.

ENERGY INNOVATION FUND

Eligible renewable hydrogen projects have been supported through Round 2 of the Victorian Government’s Energy Innovation Fund, with Yarra Valley Water receiving a grant of AUD$11.9 million for its Renewable Hydrogen Hydro-Gen 1 project.

HYDROGEN ENERGY SUPPLY CHAIN (HESC)

The Victorian Government committed AUD$50 million to the development of the Hydrogen Energy Supply Chain (HESC) Pilot project in the Latrobe Valley. The pilot project was completed in early 2022: it produced and transported hydrogen from coal in the Latrobe Valley and exported it to Japan.

HUME HYDROGEN HIGHWAY

The Hume Hydrogen Highway initiative was announced on 25 March 2022. The Initiative is a AUD$20 million grant program to deliver Australia’s first renewable hydrogen refuelling network along Australia’s busiest freight corridor, the Hume Highway between Melbourne and Sydney.

The Victorian Government has partnered with the New South Wales Government (NSW) to deliver the initiative. Each state has committed AUD$10 million in grant funding to deliver at least four renewable hydrogen refuelling stations and approximately 25 hydrogen powered trucks to use the network. Applications to the initiative have closed and the Victorian and NSW governments are working through the options to identify a suitable project.

COMMONWEALTH DRIVING THE NATION FUND

The October 2022-23 federal budget released on 25 October 2022, under the Driving the Nation Fund, includes an allocation by the Commonwealth of matched funding to that already committed by New South Wales and Victoria (AUD$20 million) for the Hume Hydrogen Highway initiative and makes available the same amount to other jurisdictions on a matching basis (up to AUD$60 million, for a potential total Commonwealth outlay of AUD$80 million).

HYDROGEN AS LONG DURATION ENERGY STORAGE

In September 2022, the Geological Survey of Victoria (GSV) released a report investigating the potential to store hydrogen in the depleted, unproduced and repurposed gas fields near Port Campbell. The report estimates the Port Campbell area may have up to 42.7 PJ of storage available.

Additionally, in March 2024, ARENA announced AUD$2 million funding to Lochard Energy to deliver a feasibility study for the H2RESTORE project. The study will investigate the commercial and technical viability of storing renewable hydrogen underground in existing gas reservoirs in Port Campbell.

PORTLAND DIVERSIFICATION FUND

In September 2023, the Victoria Government announced the award of AUD$500,000 (through the Portland Diversification Fund) to Portland H2 – a subsidiary of HAMR Energy – to support a feasibility study investigating the establishment of a plant converting plantation forestry residue to green methanol at the Portland site.

BREAKTHROUGH VICTORIA – JUPITER IONICS

In March 2024, Breakthrough Victoria announced it was investing AUD$4 million in Jupiter Ionics, a local company that has developed a novel electrolytic cell technology to produce green ammonia.

MADE IN VICTORIA – ENERGY TECHNOLOGIES MANUFACTURING PROGRAM

On 25 October 2023, the Victorian Government announced applications opened for the Made in Victoria – Energy Technologies Manufacturing program to support manufacturers to purchase or develop new equipment, skills, or technology enabling them to capitalise on renewable energy opportunities. Grants of between AUD$100,000 and AUD$750,000 were available to businesses to increase capacity to manufacture components for zero emissions and renewable energy supply chains like wind, hydrogen and solar (applications closed 13 December 2023).

NATIONAL HYDROGEN TECHNOLOGY SKILLS TRAINING CENTRE

Victoria is delivering a Renewable Hydrogen Worker Training Centre to ensure it has a pipeline of skilled workers to meet workforce needs. Its establishment will be delivered through an open competitive selection process with up to AUD$8 million in state funding and the Australian Government (in its 2024-25 Federal Budget) has committed up to AUD$10 million in additional funding. Find out more about Victoria Worker Training Centres here: Worker training centres (energy.vic.gov.au)

COMMONWEALTH CLEAN HYDROGEN INDUSTRIAL HUBS PROGRAM

The October 2022-2023 federal budget also confirmed a funding award of up to AUD$2.98 million to the Victorian based project Zero Degrees Rosella 1 La Trobe Valley Blue Hydrogen.

 

Updated: April 2025