The Australian Renewable Energy Agency has shortlisted a group of large-scale proposals under Round 2 of the Hydrogen Headstart Program, in what it describes as a significant step toward expanding Australia’s renewable hydrogen industry.
On behalf of the Australian Government, the Australian Renewable Energy Agency announced that selected projects will now advance to the full application stage, following what it described as strong industry participation across multiple states and potential end uses including ammonia, methanol, fertiliser production and sustainable aviation fuel.
The federal government has also increased funding for the program to $1 billion in the 2026 Budget, with production credits intended to help bridge the gap between current hydrogen production costs and market prices over a 10-year period.
Darren Miller said the level of interest in the program reflects ongoing industry commitment to scaling the sector. “Renewable hydrogen presents Australia with a significant economic and decarbonisation opportunity,” Miller said.
He added that the fuel’s potential use in aviation, shipping and fertiliser production could “help improve the nation’s energy resilience in the longer term.”
He said the sector remains complex and capital intensive, but noted that the shortlisted proposals reflect alignment with emerging market demand and industrial decarbonisation needs.
The shortlisted projects include proposals in Tasmania, Queensland, Victoria and Western Australia. They range in scale from 120 megawatts to 750 megawatts of electrolysis capacity, with developers including Bell Bay Powerfuels, European Energy Australia, HAMR Energy, HIF Asia Pacific, Murchison Hydrogen Renewables, Perdaman Commercial Developments and Summit Hydro.
Planned outputs span methanol, ammonia, urea, alumina processing inputs and alternative fuels such as sustainable aviation fuel.
Shortlisted applicants will now progress to a detailed assessment and due diligence process before submitting full applications, which are due in early September 2026. Final recommendations will be provided to Chris Bowen for approval.
According to the Australian Renewable Energy Agency, it has already committed more than $1.2 billion to two projects under Round 1 of Hydrogen Headstart and over $396 million to 68 hydrogen-related projects since 2017, as part of broader efforts to develop Australia’s renewable hydrogen capacity.
