PERTH (miningweekly.com) – The federal government has opened consultation on the design of its A$2-billion Hydrogen Headstart programme to support new large-scale renewable hydrogen projects in Australia.

The programme will build domestic hydrogen experience and expertise and help Australia connect to new supply chains to help Australia become a renewable energy superpower, taking advantage of future jobs and investment potential.

The government said in a statement on Friday that a large-scale hydrogen industry could create more than 16 000 jobs in regional Australia and a further 13 000 jobs in renewable energy infrastructure.

The government is seeking feedback from stakeholders on the design of the competitive process to select large-scale, Australia-based renewable hydrogen projects where public investment can bridge the commercial gap. Successful projects under the programme will receive revenue support over ten years, to help boost private investment and bridge the gap between the cost of hydrogen produced and the sales price of hydrogen or its derivative products.

Minister for Climate Change and Energy Chris Bowen said scaling up production of renewable hydrogen was vital for achieving Australia’s ambition to become a renewable energy superpower.

“A renewable hydrogen industry in Australia will ensure we are in the race to become a global energy powerhouse, ensuring Australia’s regions continue to power Australia and the world for decades to come,” Bowen said.

“The A$2-billion Hydrogen Headstart programme puts Australia on course for up to a 1 000 MW of electrolyser capacity by 2030. This will be a major step up for Australia’s industry. The largest electrolyser projects that have reached final investment decision so far are at 1 to 10 MW in scale.

“Hydrogen Headstart is a key step towards unlocking an estimated A$300-billion in private investment in Australian renewable hydrogen.

“Working with industry experts and stakeholders to design the programme means we can maximise the success of Australia’s renewable hydrogen future,” Bowen said.

Australian Renewable Energy Agency (Arena) CEO Darren Miller said the consultation would reveal the best pathway to a thriving renewable hydrogen industry. 

“Arena was pleased to see the Australian government recognise our expertise in renewable hydrogen by calling on us to co-develop the Hydrogen Headstart programme,” Miller said. 

“The consultation paper we’ve launched today will kick off discussions about how Hydrogen Headstart can best deliver for the Australian public. 

Australia has all the ingredients to be a global leader in renewable hydrogen. Together with Department of Climate Change, Energy, the Environment and Water, we’ll  be consulting widely with industry and other stakeholders to hear their views and inform what will be a transformative scale up of Australia’s renewable hydrogen capacity.”