The Federal Government has instructed the Clean Energy Finance Corporation (CEFC) to direct a $300 million investment towards new hydrogen projects.
Known as the Advancing Hydrogen Fund, the initiative will see the CEFC provide either debt or equity finance to eligible larger-scale commercial and industrial projects, typically requiring $10 million or more of capital, with investments to include co-financiers and equity partners where possible.
The CEFC has been directed to initially target projects included in the Australian Renewable Energy Agency’s (ARENA) Renewable Hydrogen Deployment Funding Round, with the goals of these projects to advance hydrogen production, develop export and domestic supply chains, establish hydrogen hubs and those that assist in growing domestic demand for the fuel.
Federal Minister for Energy and Emissions Reductions Angus Taylor said the government was aiming to produce hydrogen at less than $2/kg.
“The Australian Government has a strong commitment to building a hydrogen industry which will create jobs, many in regional areas, and billions of dollars in economic growth between now and 2050,” said Mr Taylor.
“Our hydrogen industry has the ability to make a tremendous positive impact both at home and overseas.
“From cheaper energy bills and job creation in regional Australia, to playing a role in reducing global emissions both at home and in countries that buy Australian produced hydrogen, the industry’s potential cannot be ignored.”
CEFC CEO Ian Learmouth said hydrogen was a versatile energy carrier that was gaining significant worldwide support.
“Accelerating the transition to green ammonia, produced using renewable energy, represents a sizeable abatement opportunity for Australia, with the potential to position Australia as a leading global producer and exporter of green ammonia,” he said.
“We see green hydrogen as offering the most credible pathway to decarbonisation for high emitting sectors and those which lack scaleable electrification options.
“Together, these sectors are responsible for driving some 30 per cent of Australia’s greenhouse gas emissions.”
For more information visit the CEFC website.
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