With an estimated project pipeline of $300 billion, and a massive renewable energy potential, Australia aims to be a champion of green hydrogen production and targets to set benchmarks for some of the lowest green hydrogen costs worldwide. With the backing of progressive initiatives, Australia has taken a huge stride forward by launching the ‘Hydrogen Headstart’ production subsidy.
The Hydrogen Headstart program is a A$2 billion fixed subsidy program aiming to facilitate green hydrogen production by bridging the gap between production costs and estimated sale price of green hydrogen and derivatives. In this article, we analyse the key features of the program and the composition of the bid to be submitted. Building on the bid requirements, we also draw conclusions on the required maturity of the projects that can be applied for.
Finally, we draw comparisons between the Australian Hydrogen Headstart program and the recently announced European Union Pilot auction.
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