Victoria

Victoria – Hydrogen Industry Policy Initiatives

RENEWABLE HYDROGEN INDUSTRY DEVELOPMENT PLAN

In February 2021, the Victorian Government launched the Victorian Renewable Hydrogen Industry Development Plan (‘the Plan’). The Plan set the scene for a thriving renewable hydrogen industry and showcased that Victoria has the right elements to grow the sector.  Its goal is to stimulate initial investment, employment, innovation, and 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 July 2021 the Victorian Government announced two new grant programs under the banner of the AVHI:

In January 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. 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.

AUSTRALIAN HYDROGEN CENTRE

The Victorian Government is a founding member of the Australian Hydrogen Centre and supported a series of feasibility studies examining hydrogen blending in the natural gas network. These studies were released in 2023.

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.

CLIMATE CHANGE STRATEGY AND ZERO EMISSIONS VEHICLE (ZEV) ROADMAP

In May 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, which will support Victorian residents and businesses to purchase new ZEVs, including hydrogen fuel cell electric vehicles.
  • 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. In May 2023, it was announced that six bus operators across Victoria are taking part in a trial which will see 52 zero emission buses – 50 electric and two hydrogen buses – rolled out across Melbourne, Traralgon and Seymour.
  • 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 – to be updated later in 2023 – indicates that renewables-based hydrogen will play a critical but targeted role in Victoria’s renewable energy transition.

HYCEL TECHNOLOGY HUB

The Victorian Government provided AUD$9 million to establish the Hycel Technology Hub at Deakin University’s Warrnambool campus. A new research and training facility to be constructed on the campus and will specialise in developing, testing, training, demonstrating, and manufacturing hydrogen fuel technology. Areas of research outcomes will include fuel cells for transport, especially for heavy vehicles, as well as assessing the suitability for natural gas pipelines to carry hydrogen for housing and industry.

In addition, Deakin University aims to work with Warrnambool Bus Lines to convert the Warrnambool Bus Lines fleet to renewable hydrogen.

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. VH2 is supporting sustainable manufacturing practices and the ability to store clean energy from renewable sources and striving to create a sustainable future through testing, trialling and demonstrating new and emerging hydrogen technologies. VH2 funding is also supporting construction of a hydrogen refuelling station located at CSIRO’s Clayton campus, expected to be launched in 2023.

AIR HUB

The Victorian Government provided AUD$12 million to support Swinburne University of Technology’s Aerostructures Innovation Research Hub (AIR Hub). The AIR Hub is driving innovation in aerostructures with a focus on civil, cargo and aeromedical airliners, urban electric vertical take-off and landing (eVTOL) air vehicles, and advanced composite materials for the space and satellite industries. AIR Hub will also support 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 is enabling 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, which commenced operations in early 2021 and was completed in early 2022, produced and transported hydrogen from coal in the Latrobe Valley and exported it to Japan. The results from the Pilot Project phase are informing the project’s further stages of development; in March 2023, the Japanese project proponents announced the HESC project had entered the commercial demonstration phase, with ¥220 billion Japanese Yen (approximately AUD$2.35 billion) awarded to Japan Susio Energy (JSE) through the Japanese Government’s Green Innovation Fund. JSE indicated that this injection of capital would enable it to design and build commercial scale facilities to liquefy and ship the hydrogen from Port of Hastings to the Port of Kawasaki in Japan.

HUME HYDROGEN HIGHWAY

In March 2022, the Governments of Victoria, New South Wales and Queensland announced an agreement to collaborate on the development of an east coast renewable hydrogen refuelling network by 2026, focusing on the freight corridor routes of the Hume Highway, the Pacific Highway and the Newell Highway.

The $20 million Hume Hydrogen Highway initiative is being co-delivered by the Victorian and NSW Governments. The initiative opened for applications in July 2022, seeking projects that will develop at least four refuelling stations along the Hume highway between Melbourne and Sydney and deploy at least 25 hydrogen-powered trucks. Applications closed 28 October 2022 with an announcement of the successful project consortium expected in 2023.

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).

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.

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.

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 are available to businesses to increase capacity to manufacture components for zero emissions and renewable energy supply chains like wind, hydrogen and solar (with applications closing 13 December 2023).

 

Updated: October 2023