On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) has 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 programme in the 2026 Federal Budget to AU$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 fertilizer 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 |
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 AU$1.2 billion to two projects in Round 1, and over AU$396 million to 68 renewable hydrogen projects since 2017 through other funding programmes.
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.
Shortlisted applicants now have until early September 2026 to submit their full application. Following the assessment phase, a recommendation will be made to the Hon Chris Bowen MP, Minister for Climate Change and Energy, for approval on which projects will receive support.