The Australian Renewable Energy Agency (ARENA) has shortlisted seven companies for a $70 million hydrogen funding round, including major players BHP and Woodside.
In April, ARENA opened its $70 million Renewable Hydrogen Deployment Funding Round to help fast track Australia’s development of renewable hydrogen.
The 7 shortlisted applicants – now invited to submit a full application for the next stage – are APT Management Services Pty Limited, ATCO Australia Pty Ltd, Australian Gas Networks Limited, BHP Billiton Nickel West Pty Ltd, Engie Renewables Australia Pty Ltd, Macquarie Corporate Holdings Pty Limited and Woodside Energy Ltd.
The total grant requested across all 7 applications is more than $200 million with a total project value of almost $500 million.
All applicants have projects involving deployment of 10 MW or larger electrolysers, made up of various end uses including transport, gas injection, renewable ammonia production, power and industrial use.
ARENA aims to support two or more of the shortlisted large-scale renewable hydrogen projects that are expected to be among some of the largest electrolysers in the world; each project will need to be powered by renewable electricity, whether directly or through a contracting approach.
ARENA CEO Darren Miller said the agency’s goal is to bring the price of renewable hydrogen down to be competitive with other forms of energy.
“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,” said Mr Miller.
“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.”
The shortlisted applications will have until January 2021 to prepare their submission, with ARENA experts selecting the preferred projects mid-2021.
By the end of 2021, successful projects are expected to reach financial close and then commence construction by 2022.
During the initial applications, ARENA received 36 expressions of interest, equalling more than $3 billion of renewable hydrogen projects.
For more information visit the ARENA website.
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