Regional Hydrogen Hubs Program (Renamed Program and Updated Description)

October 28th, 2022

Regional Hydrogen Hubs Program

The Australian Government is investing AUD$526 million in support of the development of eight regional hydrogen hubs across Australia, as well as nine design and development studies.

Main proponents:

Australian Government

 

Main end-use classification:

National funding program in support of hubs developments

Status:

National funding program – funding available for hydrogen hubs development and hubs development and design studies

Estimated cost:

 

Other involvement:

 

Production details:

To be evaluated as part of project rollouts and feasibility and other studies

Location:

Canberra, Australia (Department of Climate Change, Energy, the Environment and Water is administering body)

Funding program value:

AUD$526 million allocated – as included in the October 2022-23 federal budget released on 25 October 2022

Project description

(This program was previously titled ‘Australian Clean Hydrogen Industrial Hubs Program’.)

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.”

Through a series of measures since 2020, successive Australian Governments have, as at the time of the October 2022-23 federal budget, announced planned investments of up to AUD$526 million to support the rollout and development of regional hydrogen hubs across Australia.

Planned investments in regional hydrogen hub developments, as included in the October 2022-23 federal budget, include funding awards made under two hydrogen hub-specific grant programs (funding guidelines launched in September 2021) to progress development and design studies as well as the rollout of large-scale hydrogen hubs.

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$431 million. Note: hub details are subject to change.

Hubs 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 – up to AUD$2.98 million

Allocated funds under this stream – Up to ~AUD$23 million. Note: project details are subject to change.

In addition to the above awards, the October 2022-23 federal budget also includes an allocation of up to AUD$71.9 million in support of the development of a hydrogen hub in Townsville, Queensland.

Related announcements

The October 2022-23 federal budget also included the following funding allocations of relevance to regional hydrogen hubs development:

  • Allocation of AUD$1.5 billion in planned equity to support the construction of common user marine infrastructure within the Middle Arm Sustainable Development Precinct at Darwin in the Northern Territory, with the aim to further develop export opportunities in Northern Australia for commodities such as green hydrogen and critical minerals.
  • Allocation of AUD$565 million to invest in enabling infrastructure in the Pilbara region of Western Australia to support emerging green industries and technologies.
  • Allocation of AUD$100 million to support the Port of Newcastle and the Hunter region of New South Wales to become hydrogen-ready.

 

Updated: October 2022