The Australian Renewable Energy Agency (ARENA) has formally launched the second round of its Hydrogen Headstart Program, offering up to $2 billion in funding to stimulate large‑scale renewable hydrogen projects across the country.
This new funding round builds on lessons from the first phase, with a sharper focus on high‑priority applications and long-term cost reductions in renewable hydrogen production. Proposed eligible areas include innovative plant design to lower capital expenditure, boosting electrolyser efficiency, deploying flexible operations to reduce renewable electricity costs, and upgrading infrastructure for sectors such as green ammonia, iron and steel, alumina, aviation, and shipping.
ARENA chief executive Darren Miller said the program is intended to bridge the gap between ambition and reality, recognising renewable hydrogen’s crucial role in decarbonising industries where electrification is not practical. He added that supporting early movers will help stimulate innovation, investment and learning across the sector.
To date, ARENA has invested more than $370 million in 65 hydrogen projects spanning early‑stage research to first‑of‑a‑kind deployments. Among the recipients under the first round, Orica’s Hunter Valley Hydrogen Hub was awarded $432 million, while the Murchison Green Hydrogen project received $814 million.
Expressions of interest for Round 2 are now open, with further details and program guidelines available via ARENA’s funding portal.
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