< Renewable energy

Hydrogen

Advancing Hydrogen Fund

The Advancing Hydrogen Fund has up to $300 million available to support the growth of a clean, innovative, safe and competitive Australian hydrogen industry.  

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.

The Advancing Hydrogen Fund will draw on existing CEFC finance. In line with the CEFC Act, projects seeking CEFC finance through the Advancing Hydrogen Fund are required to be commercial, draw on renewable energy, energy efficiency and/or low emissions technologies and contribute to emissions reduction.

Eligible projects can include those which advance hydrogen production; develop export and domestic hydrogen supply chains, including hydrogen export industry infrastructure, establish hydrogen hubs and assist in building domestic demand for hydrogen.

Read our fact sheet for more information.

Applications for renewable hydrogen

Transportation

Fuel for light and heavy-duty vehicles, material handling, rail, shipping, marine and aviation.

Feedstock for industry

Including providing low emissions feedstock for ammonia, methanol, oil refineries and steel mills.

Generation and balancing

Providing centralised power, including storage, and distributed power (off-grid and back-up).

Fuel for industry

Especially in medium-high grade heat applications which are notoriously difficult to electrify.

Fuel for buildings

Applications include blending into the gas grid and combined heat and power.

 

Hydrogen and emissions

Current hydrogen technologies represent the most credible pathway to the decarbonisation of “hard-to-abate” sectors – including those which produce emissions in the production process and/or lack scaleable electrification options. Together, these sectors are responsible for driving approximately 30 per cent of Australia’s greenhouse gas emissions.

Working with ARENA

An early priority for the Advancing Hydrogen Fund will see the CEFC seek to invest in projects included in the $70 million ARENA Renewable Hydrogen Deployment Funding Round.

The Round is receiving expressions of interest for projects which:

  • 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.

CEFC finance and hydrogen

CEFC finance remains central to filling market gaps, whether driven by technology, development or commercial challenges. We also invest to lead the market, putting our capital to work in new areas, building investor confidence and accelerating solutions to difficult problems. Investment in the emerging hydrogen sector is an exciting extension of the CEFC’s investment focus.

CEFC finance for the hydrogen sector has the potential to deliver significant benefits:

  • Drive large-scale deployment of electrolyser technologies: leading to technology cost reductions, improved supply chain expertise, increased industry expertise and offtake opportunities
  • Catalyse the hydrogen industry: to accelerate the deployment of large-scale renewable energy hydrogen technologies, including demand-side projects to achieve price discovery, increase transparency of current and projected economies of scale, and increase skills and market knowledge
  • Access to tailored finance: providing investing support to project proponents as they seek to accelerate hydrogen developments
  • Support the implementation of the National Hydrogen Strategy: including its aims to create jobs, especially in regional areas, contribute to a cleaner environment, increase prosperity and enhance Australia’s fuel security.