Consultation has opened for the Australian government’s Hydrogen Headstart program funded at $2 billion.

With the federal government, the Australian Renewable Energy Agency (ARENA) and Department of Climate Change, Energy, the Environment and Water (DCCEEW), the commencement of consultation will aim to see the design of the flagship hydrogen program.

“ARENA was pleased to see the Australian Government recognise our expertise in renewable hydrogen by calling on us to co-develop the Hydrogen Headstart program,” ARENA chief executive officer Darren Miller says.

“The consultation paper we’ve launched today will kick off discussions about how Hydrogen Headstart can best deliver for the Australian public.”

Hydrogen Headstart was announced in the 2023 federal budget and will deliver a step change in Australia’s renewable hydrogen production by underwriting some of the largest electrolyser deployments in the world.

The program is intended to bridge the commercial gap for early projects and put Australia on course for up to a gigawatt of electrolyser capacity by 2030.

ARENA and DCCEEW have published a consultation paper outlining indicative specifications for the program. The consultation paper covers proposed objectives, eligibility criteria and funding mechanism as well as other features of the program.

The consultation paper proposes to support projects with a hydrogen production credit delivered over ten years, bridging the gap between the cost of hydrogen produced and the sales price of hydrogen or its derivative products.

ARENA and DCCEEW will be accepting written submissions, hosting an information webinar and running in-person consultation forums in Sydney and Perth.