On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has today announced the shortlisted projects for Round 2 of the Hydrogen Headstart Program, marking a major step forward in scaling Australia's renewable hydrogen industry.
The projects selected to progress to the next stage in the application process are some of the most advanced large-scale renewable hydrogen proposals in the country, spanning multiple states and a range of end uses, including ammonia and alternative fuels.
The Australian Government has revised the amount of funding allocated to the program in the 2026 Federal Budget to $1 billion, and ARENA will now invite shortlisted projects to submit full applications. The full application phase includes a rigorous assessment process and detailed due diligence. Applicants must satisfy program criteria, with only those that meet a high merit threshold being considered for funding.
ARENA CEO Darren Miller said the level of engagement in Round 2 of Hydrogen Headstart demonstrates that industry remains committed to building a renewable hydrogen sector in Australia.
"Renewable hydrogen presents Australia with a significant economic and decarbonisation opportunity. Its potential to develop low-emission fuels for aviation and shipping, as well as key inputs for fertiliser could also help improve the nation's energy resilience in the longer term.
"Renewable hydrogen is a complex, capital-intensive industry and progress takes time, but it is a critical enabler of industrial decarbonisation, particularly for hard-to-abate sectors. What we're seeing are expressions of interest that are considered and well aligned to future market demand."
The shortlisted applicants are:
| Applicant | Project title | Electrolysis facility size (MW) | State | Hydrogen end use |
| Bell Bay Powerfuels Pty Ltd | Bell Bay Powerfuels | 300 | TAS | Methanol |
| European Energy Australia Pty Ltd | South East Queensland Power-to-X Project | 150 | QLD | Methanol |
| HAMR Energy Pty Ltd | Portland Renewable Fuels Project | 220 | VIC | Methanol and SAF |
| HIF Asia Pacific Pty Limited | HIF Tasmania e-Fuel Facility | 140 | TAS | Methanol |
| Murchison Hydrogen Renewables Pty Ltd * | Murchison Green Hydrogen Project Stage 1B | 500 | WA | Ammonia |
| Perdaman Commercial Developments Pty Ltd | Perdaman Helios (Karratha): Decarbonising Fertilisers | 750 | WA | Urea |
| Summit Hydro Pty Ltd | Gladstone Green Hydrogen Project | 120 | QLD | Alumina |
* as trustee for Murchison Hydrogen Renewables Project Trust (developed by Copenhagen Infrastructure Partners)
Announced in the 2023-24 Budget, the Hydrogen Headstart Program aims to catalyse Australia's hydrogen industry to take advantage of the country's opportunity to be a global hydrogen leader.
Round 2 of Hydrogen Headstart builds on ARENA's existing support of renewable hydrogen, with the Agency having already committed more than $1.2 billion to two projects in Round 1, and over $396 million to 68 renewable hydrogen projects since 2017 through other funding programs.
Under the Program, projects seeking to produce renewable hydrogen, or derivatives, can apply for a production credit delivered over ten years to bridge the commercial gap between the cost of producing renewable hydrogen and market prices.
