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.
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.
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.
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:
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: