Clean Energy Finance Corporation will administer the $192m Advancing Hydrogen Fund in Australia
Australia supports the growth of hydrogen production. (Credit: Pixabay/PublicDomainPictures)
The Australian Government has announced the launch of new A$300 million ($192m) fund to support the growth of the hydrogen industry.
The Advancing Hydrogen Fund, which will be administered by Clean Energy Finance Corporation (CEFC), will finance the projects that focus on growing a clean, innovative and competitive hydrogen industry in the country.
CEFC CEO Ian Learmonth said: “Hydrogen has the potential to make a substantial contribution to our clean energy transition, reducing emissions across the economy while underpinning the development of an important domestic and export industry.
“Renewable hydrogen can enable the deep decarbonisation of notoriously difficult-to-abate sectors, particularly in transport and manufacturing, while accelerating the contribution of renewable energy across the economy.
“CEFC finance remains central to filling market gaps, whether driven by technology, development or commercial challenges.”
CEFC to seek investment in projects that will be included in ARENA’s funding round
CEFC, as an early priority, will seek investment in projects that would be included in the ARENA Renewable Hydrogen Deployment Funding Round, which aims to demonstrate the technical and commercial viability of large-scale hydrogen production using electrolysis.
In addition, projects seeking finance from CEFC through the Advancing Hydrogen Fund need to be commercial, draw on renewable energy, energy efficiency and/or low emissions technologies and contribute to emissions reduction.
Commenting on the funding round launch, Australia Finance Minister Mathias Cormann said: “This new fund will be a catalyst for the future growth of Australia’s hydrogen industry, which has the potential to boost Australia’s energy security, while creating more new jobs across the country and becoming a major new export industry.”
Australia Energy and Emissions Reduction Minister Angus Taylor said: “Importantly, if we can get hydrogen produced at under $2 a kilogram, it will be able to play a role in our domestic energy mix to bring down energy prices and keep the lights on.”
Earlier this year, Australian Gas Networks (AGN), part of Australian Gas Infrastructure Group (AGIG), has secured funding for the construction of Australian Hydrogen Centre.
The Centre aims to assess hydrogen potential for local gas networks in South Australia and Victoria.