Until December 9, 2025, expressions of interest can be submitted in a bid to receive revenue support for large-scale hydrogen projects.
Specifically, Arena is asking for project proposals that make green hydrogen production and use cheaper and more efficient.
Developers can plan to do this through better plant design, improved electrolyser performance, smarter use of renewable power, or stronger infrastructure for key end uses such as ammonia, steel, alumina, and heavy transport.
H2 View understands that successful projects are awarded a performance-based, 10-year production credit contract as part of the Future Made in Australia (FMIA) bill.
“Arena is aiming to bridge the gap between ambition and reality,” explained the agency’s CEO, Darren Miller. “Getting renewable hydrogen to commercial scale will take time, innovation, and ongoing support.”
Applicant projects will be evaluated by Arena and the Department of Climate Change, Energy, Environment and Water for the actual cost of producing green hydrogen and what customers are willing to pay.
Over the past eight years, Arena has invested over AUD $370m in 65 green hydrogen projects, in addition to two projects under the first Hydrogen Headstart funding round, including AUD $432m for Orica’s 50MW green hydrogen hub in New South Wales.
Dr. Fiona Simon, CEO of the Australian Hydrogen Council (AHC), said she was pleased to see the Australian government move ahead with the programme’s second round.
“Hydrogen Headstart together with the hydrogen production tax incentive and demand side incentives remain critical to bridge the commercial gap for hydrogen, attract private investment and build our sovereign capabilities,” the CEO added.
Australia’s hydrogen industry is showing signs of recovery after a turbulent 2024 and early 2025 marked by multiple setbacks.
BP’s 105MW Kwinana project, Origin Energy’s Hunter Valley Hydrogen Hub, and Stanwell’s Central Queensland Hydrogen Project (CQ-H2) all secured a share of AUD $2bn through Hydrogen Headstart. Yet each has since been hindered by political wrangling and shifting green hydrogen ambitions.
Analysis: Billions pledged, projects paused – what’s next for Australia’s hydrogen industry?
Like most geographies, more voices are beginning to acknowledge that clean hydrogen has been overhyped in Australia, which has only compounded political criticism.
One of those voices is Climate Impact Corporation (CIC) co-founder David Green, who told H2 View that many projects had been launched without fully addressing critical cost and supply chain challenges.
“People often forget that we’re establishing an entirely new industry,” he explained. “While hydrogen production has existed for a long time, green hydrogen is new.
“It requires new regulatory frameworks, market designs and incentives, along with innovative ways of implementations. Assuming that conventional large infrastructure project strategies can be directly applied is a recipe for failure,” Green claimed.
He emphasised the importance of securing offtake agreements, stressing that the hydrogen projects struggle when the costs are too high.
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