What is the Renewable Hydrogen Deployment Funding?

The ARENA’s Renewable Hydrogen Deployment Funding round is an initiative to support the deployment of new large-scale electrolysers, that produce hydrogen from water using electricity.

 

Background

The Australian Renewable Energy Agency has opened a new $70 million hydrogen funding round for applications that the agency hopes will fast track the establishment of a globally competitive hydrogen industry in Australia.

The Renewable Hydrogen Deployment Funding Round follows the release of the National Hydrogen Strategy in late 2019 and is in line with the Australian Government’s focus on growing an innovative, safe and competitive hydrogen industry in Australia.

The Renewable Hydrogen Deployment Funding Round – Funding Announcement details the process that will be used by ARENA under the Advancing Renewables Program (ARP). The Renewable Hydrogen Deployment Funding Round is a Competitive Process as defined in the ARP Guidelines, and clauses 4.27 to 4.32 apply. The Funding Announcement should be read in conjunction with the ARP Guidelines (which apply to the Funding Round).

 

Objectives

The key objectives of the Renewable Hydrogen Deployment Funding Round are to:

  • Demonstrate electrolysis and associated renewable hydrogen technologies at scale.
  • Facilitate a pathway to technical and commercial viability of renewable hydrogen in Australia.
  • Provide price discovery and transparency in relation to the current and projected economics for renewable hydrogen technologies.

 

Funding

ARENA has allocated $70 million for the Funding Round. ARENA intends to provide grant funding for at least two projects as part of the Funding Round.

ARENA may allocate an amount of funding that is less than the Total Funding Allocation, or fund fewer than two projects, if:

  • the Proposals received are not considered to be of sufficient merit to support an offer of ARENA funding
  • it is not possible to support all high merit projects within the Total Funding Allocation.

At its discretion, ARENA may also allocate an amount of funding greater than the Total Funding Allocation if it considers this to represent value for money and if ARENA has sufficient available remaining funding.

 

Eligible Projects

The Renewable Hydrogen Deployment Funding Round is open to Proposals that demonstrate the production of hydrogen via electrolysis. Proposals for projects must comply with the following parameters:

  • Projects must include a new-build electrolyser for the production of renewable hydrogen in Australia. The project may utilise existing energy generation infrastructure or hydrogen end use infrastructure.
  • Projects must meet or exceed the minimum electrolyser size of 5 MW (at the DC capacity warranted by the manufacturer) with preference
    given to projects with an electrolyser size greater than 10 MW. There is no maximum size limit.
  • Projects must be for a single site location in Australia.
  • Projects must have a valid commercial case for the production and use of hydrogen.
  • Hydrogen production must be 100 per cent powered by either:
    • on-site renewable electricity generation
    • retirement of Renewable Energy Certificates (RECs) or equivalent certificate
    • contracted electricity derived from a renewable Power Purchase Agreements (PPA)
    • or a combination of the above.
  • The Applicant must present a credible commercialisation pathway (cost reduction pathway) for hydrogen production.

A project is required to involve the deployment of a new-build electrolyser that satisfies the above conditions as part of either a brownfield or greenfield project for the production of renewable hydrogen. The project may include upstream and downstream processing activities, however, as ARENA funding is intended to support the electrolyser and balance of plant components and these aspects must be clearly identified in the Proposal.

Projects that do not fit within these parameters will not be assessed as high merit under the Funding Round.

 

Eligible Applicants

Applicants under this Funding Round are required to meet all eligibility criteria as outlined in the ARP Guidelines.

 

Timing

Applications close 26 May 2020.

 

More Information

 

Latest News

Seven companies have been shortlisted for the $70 million Renewable Hydrogen Deployment Funding Round.

The companies are invited to submit a full application, the Australian Renewable Energy Agency announced on Monday, with this due in January 2021. Two or more projects expected to be selected by mid-next year.

Those shortlisted are:

  • APT Management Services
  • ATCO Australia
  • Australian Gas Networks
  • BHP Billiton Nickel West
  • Engie Renewables Australia
  • Macquarie Corporate Holdings
  • Woodside Energy

Each project would deploy electrolysers of 10 MW or larger, and the list was “made up of various end uses including transport, gas injection, renewable ammonia production, power and industrial use” said ARENA.

ARENA CEO Darren Miller said the ultimate goal was to make hydrogen competitive with other energy sources.

The best way to help build a hydrogen industry is to support projects that will help demonstrate the technology at scale, and share the lessons learned to help the industry as a whole reduce risk and costs as well as increase efficiency,” he said.

“A thriving renewable hydrogen production sector will not only help our heavy industry and transport sectors to reduce emissions, but will provide the platform for Australia to export renewable energy and reduce emissions beyond our borders.”

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