Government Grants and Funding
OVERVIEW
The Australian Federal and WA State Governments are assisting early movers in the hydrogen industry to accelerate development of the industry, meaning there is less reliance on traditional funding solutions.
Grants and Government funding
| Name | Fund Size | Funding Type |
| Collie Industrial Transition Fund (WA Government) | $200m | Grant |
| ARENA Advancing Renewables Program | $1.9bn+ | Grant |
| Hydrogen Headstart – DCCEEW and ARENA | $2bn | Operating subsidy |
| CEFC Advancing Hydrogen Fund | $300m | Equity, debt |
| Other initiatives still being fully scoped, including the National Reconstruction Fund and Powering the Regions Fund | > $4bn | Combination / TBD |
Collie Industrial Transition Fund
The $200 million Collie Industrial Transition Fund1 has been established by the WA Government to support large-scale industrial projects that can provide long-term, sustainable jobs in Collie. The Fund aims to attract new and emerging industries as Collie transitions to new forms of industry and power generation2. Funding may also be used to develop project-ready industrial land.
Frontier has submitted an EOI and continues to engage with the Fund
Australia Renewable Energy Agency (ARENA) Advancing Renewables ProgramThe ARENA Advancing Renewable Program aims to support a broad range of development, demonstration and pre-commercial deployment projects that can deliver affordable and reliable renewable energy for Australian families and businesses, including improvement in technology readiness and commercial readiness of renewable energy.
Frontier is engaging actively with ARENA to secure grant funding.
Hydrogen Headstart
The 2023-24 Australian Federal Budget allocated $2bn of revenue support funding under the ‘Hydrogen Headstart’ program aimed at bridging the gap between the market price of hydrogen and the production cost of green hydrogen. An analogue is the US Inflation Reduction Act (which provides up to US$3/kg subsidy for green hydrogen production).
EOIs for Hydrogen Headstart funding are to open in 4Q23 / 1Q24, to be formally allocated by 4Q24, for funding to commence 2026-27.
Frontier is engaging in the industry consultation process and has provided a formal submission to ARENA/DCCEEW. See more detail here.
Clean Energy Finance Corporation (CEFC)
As part of a broader >$4.5bn funding available, the CEFC Advancing Hydrogen Fund3 is aiming to invest up to $300 million to support the growth of a clean, innovative, safe and competitive Australian hydrogen industry.
The Project satisfies CEFC funding criteria, and a funding application will be considered once the outcomes of the hydrogen-fuelled Peaking Plant Study are received later in CY23.
1 https://www.wa.gov.au/organisation/department-of-the-premier-and-cabinet/collie-industrial-transition-fund
2 https://www.wa.gov.au/government/announcements/state-owned-coal-power-stations-be-retired-2030-move-towards-renewable-energy.
3 https://www.cefc.com.au/where-we-invest/special-investment-programs/advancing-hydrogen-fund/