Six of “world’s largest” green hydrogen projects shortlisted for headstart funding

An oil major, a Danish renewables giant, and one of Australia’s big three gentailers have been named among a shortlist of six contenders left in the running for a share of $2 billion in funding from the federal government’s landmark Hydrogen Headstart program.

The program, billed by the Albanese government as the largest ever funding scheme for green hydrogen, kicked off a tender process in October, seeking proposals and proponents to help transform Australia into a renewable energy superpower.

A shortlist of applicants selected by Arena and made public on Thursday has narrowed the field to six projects that will now be invited to submit full applications – with at least three expected to wind up with a share of the funding.

The projects selected are said to be among the largest in the world, representing a total electrolyser capacity of more than 3.5GW across various end uses.

Among them is the H2Kwinana Hydrogen Hub, a Western Australia project being led by oil major bp that proposes to install a 100MW electrolyser at bp’s former Kwinana oil refinery, with the potential to expand the project in the future to a total of 1.6GW production.

Bp’s project, which has already received $70 million in backing from the Albanese government’s Regional Hydrogen Hubs program, is expected to produce more than 14,000 tonnes of green hydrogen a year for industrial use and heavy transport.

Another contender, also in WA, is the Murchison Hydrogen Renewables project proposed for near Kalbarri and led by Copenhagen Infrastructure Partners.

This project proposes to combine more than 5 gigawatts of wind and solar, a big battery, a 3GW electrolyser and the production of roughly 2 million tonnes a year of green ammonia for domestic and export uses.

Notably absent from the shortlist, however, is Andrew Forrest’s Fortescue Group, which is working on at least five major green hydrogen projects across the world, including on Gibson Island in Queensland, where it aims to have 550MW of electrolyser capacity to make green hydrogen and then green ammonia.

Fortescue’s Mark Hutchinson told investors in October that the company would be putting in an application for the federal program, and hoped its use of home grown electrolysers would give it an advantage over other projects.

Other projects selected by Arena include HiF Global’s propoased e-fuels facility in Hampshire, Tasmania, Origin Energy’s Hunter Hydrogen Hub in NSW, Stanwell Corporation’s Central Queensland Hydrogen Project and the Port of Newcastle Green Hydrogen project, led by Japan giant Kepco.

Arena CEO Darren Miller said on Thursday that the applicants shortlisted for the next stage provided the best opportunity at fast-tracking Australia’s renewable hydrogen industry.

“Hydrogen Headstart is a crucial step towards keeping Australia on the path to become a global hydrogen leader,  creating new export opportunities, while helping to decarbonise our economy,” Miller said.

Federal energy minister Chris Bowen said the shortlisting was a major milestone for the industry.

“We have the largest pipeline of renewable hydrogen projects in the world – Hydrogen Headstart is about supporting these projects to become a reality,” Bowen said.

“Renewable hydrogen is crucial to reach net zero, while creating economic opportunities for regional Australia.”

Bowen says the federal government intends to announce the final Hydrogen Headstart funding recipients in
the second half of 2024.