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What is the Hub Development and Design Grants?
The Hub Development and Design Grants is a program to support Australian industry on the initial development, feasibility and design work needed to advance Hydrogen Hub proposals.
Background
The Hydrogen Hub Development grant is one component of the Activating a Regional Hydrogen Industry – Clean Hydrogen Industrial Hubs program. It’s an important part of growing Australia’s hydrogen industry under the National Hydrogen Strategy.
The purpose of the Hub Development and Design Grants is to support the Australian hydrogen industry to develop and advance hub concepts to investment ready proposals.
The Australian Government is focused on the timely establishment of hubs and realisation of regional benefits. The Australian Government considers the following locations to be priority prospective hub locations, based on interest of industry and the location’s existing capability, infrastructure and resources:
- Bell Bay (TAS)
- Darwin (NT)
- Eyre Peninsula (SA)
- Gladstone (QLD)
- Hunter Valley (NSW)
- La Trobe Valley (VIC)
- Pilbara (WA)
Although these locations are considered the most advanced, applications for Hub Development and Design Grants are not restricted to these locations and applicants are able to define the ‘region’ to which their application relates.
Objectives
The objectives of the Hydrogen Hub Development and Design Grants are to:
- advance planning and design work for the construction of a variety of Clean Hydrogen Industrial hubs across Australia, with a clear intention to stimulate demand and facilitate the production of clean hydrogen for domestic and export markets while leveraging and supporting existing industrial capability, infrastructure and workforce
- develop and/or demonstrate the feasibility of regional hydrogen industrial hub proposals
- demonstrate the employment, knowledge, technological, public and commercial value of the proposed regional hubs.
The intended outcomes of the program are to make progress towards:
- making clean hydrogen available for domestic and export use
- establishing domestic clean hydrogen supply chains
- establishing clean hydrogen export pathways
- supporting existing industry to use clean hydrogen
- creating new industry being built around clean hydrogen availability in a local area
- creating new regional jobs and increased capability of local workforce
- reducing the cost of clean hydrogen production.
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Funding
The grant amount will be up to 50 per cent of eligible project expenditure (grant percentage).
- the minimum grant amount is $500,000
- the maximum grant amount is $3 million.
You are responsible for the remaining eligible project expenditure plus any ineligible expenditure, which we consider your contribution. Contributions to your project will be cash but may include up to 10% in-kind contributions. Cash contributions can come from the State and Territory government grants and cash or in-kind contributions from project partners. Where you provide in-kind contributions such as services, equipment or materials, you must calculate the equivalent dollar value.
Eligible Projects
To be eligible your project must:
- be aimed at setting out the design work and business case for establishing a hydrogen hub consisting of co-located sources of hydrogen demand and production to stimulate demand and facilitate the production and use of clean hydrogen for domestic and export markets, leveraging on the existing industrial and energy resources in the region
- have at least $1 million in eligible expenditure.
Eligible activities may include:
- preparatory activities that support the development of an investment ready project including:
- project planning and feasibility
- studies and assessments
- regulatory and environmental permitting
- relationship development including international partnerships and community engagement
- implementation planning
- establishing financing arrangements
- risk assessment and mitigation including safety matters
- running trials or pilots for commercial scale up purposes
- aking advantage of any partnering opportunities opened up by activities led by the Special
Adviser on Low Emissions Technology - workforce development strategy
- knowledge sharing
Eligible Applicants
To be eligible you must have an Australian business number (ABN). You must also be an entity incorporated in Australia, or an Australian State/Territory Government agency or body.
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Timing
Applications close 22 November 2021.
More Information
Recipient
Reducing Australia’s Greenhouse Gas Emissions: The program aims to support the establishment of hydrogen hubs in regional Australia, and, in turn, support the growth of Australia’s green hydrogen industry. The purpose of this project is to develop the Han Ho H2 project in North Queensland by undertaking a technical and commercial feasibility of the ammonia supply chain which primarily includes a pre-Front End Engineering Design (FEED) study.
