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). See announcement here.
The Department of Climate Change, Energy, the Environment and Water (DCCEEW), in conjunction with ARENA, is currently writing the program guidelines for the funding process, and have completed the first round of industry consultation. See Consultation Paper here.
Frontier believes that the Bristol Springs Project aligns well with the Eligibility Requirements, and that Frontier has excellent credentials to be one of the initial recipients of this program.
In particular, Frontier is well placed to meet the Eligibility Requirement of hydrogen production from renewable power and compliance with the proposed GO Scheme, having already received Zero Carbon Scheme pre-certification.
Frontier is engaging in the industry consultation process and has provided a formal submission.
EOIs for Hydrogen Headstart funding are to open in early 4Q23 / 1Q24, to be formally allocated by 4Q24, for funding to commence 2026-27.