Seven Shortlisted for ARENA’s Renewable Hydrogen Deployment Funding Round

Articles Written by Jarrod Wilksch (Senior Associate), Haerim Nam (Associate)

On 20 July 2020, the Australian Renewable Energy Agency (ARENA) announced that seven companies have been shortlisted to advance to the full application stage of ARENA’s Renewable Hydrogen Deployment Funding Round (Funding Round).

ARENA aims to provide funding of up to $70 million to support at least two projects that involve the deployment of a new-build electrolyser as part of either a brownfield or greenfield project for the production of renewable hydrogen. The Funding Round is an effort to support the Australian Government’s aim of building a world-class hydrogen industry.  This includes seeking to fast track the achievement of the Australian Government’s goal of producing renewables-based hydrogen for less than $2 per kilogram, also described as “H2 under $2”.

The seven shortlisted applicants (selected from a field of 36) are:

  • APT Management Services Pty Limited;
  • ATCO Australia Pty Ltd;
  • Australian Gas Networks Limited;
  • BHP Billiton Nickel West Pty Ltd;
  • Engie Renewables Australia Pty Ltd;
  • Macquarie Corporate Holdings Pty Limited; and
  • Woodside Energy Ltd.

According to ARENA, all shortlisted applicants have well developed projects that involve deploying 10MW or larger electrolysers, made up of various end uses including transport, gas injection, renewable ammonia production, power and industrial use. Four of the projects are based in Western Australia, and one each in Queensland, Tasmania and Victoria.

The projects seek $200 million in grant funding in total towards a collective project value of almost $500 million.

All applicants may also be considered for financing from the Clean Energy Finance Corporation under the corporation’s $300 million Advancing Hydrogen Fund.

Applicants must submit their full application by 20 January 2021. Successful applicants will be issued a non-binding offer to negotiate a Funding Agreement (expected to occur in mid-2021). A recipient of an offer must provide ARENA with a bid bond of $500,000 within 20 business days of the date of the offer.

Financial close is expected to occur by late 2021 and construction is expected to commence in 2022. The selected hydrogen projects are speculated to be among some of the largest electrolysers in the world.

Access the media release by ARENA here and the blog post by ARENAWIRE here.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

Related insights Read more insight

Russian sanctions: supervening illegality and impact on contracts with Russian interests

In the first case of its kind in Australia, the Federal Court of Australia held that Rio Tinto-backed Queensland Alumina Ltd was correct in interpreting and applying the sanctions imposed by the...

Mandatory climate-related financial disclosure – exposure draft legislation released for comment

Treasury has released an exposure draft of its CRFD legislation for public comment. This is the next step towards introducing mandatory and standardised CRFD for medium and large listed and...

Climate-related financial disclosure Q&A on exposure draft legislation

This short Q&A explains what is in the 12 January 2024 exposure draft legislation.