Funding up to $2 billion for large-scale renewable hydrogen projects that drive decarbonisation, industry capability and regional economic growth across Australia’s emerging clean energy sector.
On this page you will find
What is the Hydrogen Headstart Program (HHP)?
The Australian Government’s Hydrogen Headstart Program – Round 2 aims to accelerate the development of Australia’s renewable hydrogen industry and position the nation as a global clean-energy leader.
Administered by the Australian Renewable Energy Agency (ARENA) under the Future Made in Australia plan, the program supports first-mover projects that produce renewable hydrogen and its derivatives—such as green ammonia, methanol, or green metals—at commercial scale.
Renewable hydrogen is central to decarbonising hard-to-abate sectors like iron and steel, alumina, fertiliser production, and long-distance transport, while building new export and manufacturing opportunities.
Hydrogen Headstart Program level of support
Up to $2 billion is available through Headstart Production Credits (HPCs)—a funding mechanism that bridges the commercial gap between production costs and market prices.
- Total allocation: ARENA may fund a small number of large-scale projects, with flexibility to allocate more or less than the $2 billion total envelope.
- Funding structure: The HPC is a production-based grant, paid quarterly in arrears for up to 10 years after a project begins operations.
- Value: Applicants nominate an HPC value (in $/kg of hydrogen or $/unit of derivative) that reflects the economic gap between renewable-hydrogen production costs and expected offtake prices.
- Purpose: To ensure projects achieve financial viability while driving industry cost reductions, innovation, and long-term competitiveness.
Hydrogen Headstart Program important dates
- EOI Close: 5 pm AEDT, Monday 8 December 2025
- Applicants notified of EOI outcomes: March 2026
- Full Application due: August 2026
- Decision outcomes: Between October and December 2026
- Register your interest with GrantHelper.
Projects are not required to meet a fixed financial-close or commercial-operations date, but earlier delivery may be considered higher merit.
Hydrogen Headstart Program objectives
Round 2 supports projects that:
- Produce renewable hydrogen at scale to accelerate commercial viability in line with the National Hydrogen Strategy.
- Support domestic decarbonisation and build industry capability in manufacturing and export.
- Provide price transparency for renewable-hydrogen production and derivative technologies.
- Reduce barriers to future deployment through skills, supply chains, and private-sector investment.
- Facilitate knowledge-sharing to help mature Australia’s renewable-hydrogen industry.
Priority use-cases include:
- Green metals (iron and alumina)
- Ammonia and derivative products
- Long-haul transport (road, shipping, aviation)
- Power generation and grid support
- Industrial applications
Projects eligible for Hydrogen Headstart Program support
Eligible projects must:
- Be Australian-based, producing hydrogen via electrolysis powered 100% by renewable energy.
- Deploy at least 30 MW of electrolyser capacity at a single site (adjacent conversion or storage infrastructure is eligible).
- Demonstrate that renewable electricity is sourced from certified means such as LGCs, REGOs, or through the Guarantee of Origin Scheme.
- Include optional downstream facilities (e.g. ammonia synthesis, e-fuel production, green-iron processing) if co-located and owned by the same consortium.
- Comply with all Commonwealth environmental, work health and safety, and modern-slavery obligations.
Projects using fossil-fuel pathways such as coal gasification or steam-methane reforming with CCS are ineligible.
Other Hydrogen Headstart Program important details that you will need to know
Organisations eligible for Hydrogen Headstart Program support
Applicants must:
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Hold an Australian Business Number (ABN) and be one of the following:
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- Australian company incorporated under the Corporations Act 2001 (Cth)
- State or Territory-owned corporation (or subsidiary)
- Aboriginal and Torres Strait Islander corporation or land council/trust
- Torres Strait Regional Authority or Indigenous Land and Sea Corporation
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Comply with the Workplace Gender Equality Act 2012 (Cth)
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Not appear on the Commonwealth’s terrorism-sanctions or non-participation lists.
Hydrogen Headstart Program assessment criteria
All eligible projects will be assessed against five equally weighted merit criteria:
1. Alignment to Program Objectives
- Contribution to program objectives and priority use-cases
- Potential to abate emissions and advance clean industries
- Replicability and cost-reduction potential
- Economic, social and environmental benefits (including First Nations participation and Community Benefit Principles)
2. Applicant Capability and Capacity
- Demonstrated track record and expertise of the organisation and partners
- Quality of management, technical plans and governance structures
- Strength of resourcing and personnel plans
3. Project Design, Methodology and Community Benefits
- Quality and readiness of the project plan and key workstreams (technical, offtake, renewable supply, land and approvals)
- Risk management and implementation strategy
- Depth of community and First Nations engagement and benefit-sharing
- Local procurement and supply-chain development
4. Financial Viability and Co-Funding Commitment
- Strength of the project’s financial model and capital structure
- Justification for HPC value and cost competitiveness
- Evidence of equity and debt commitments and offtake agreements
- Risk management for cost overruns and delays
5. Knowledge Sharing
- Quality of the Knowledge Sharing Plan and commitment to ARENA’s requirements
- Value of insights generated for industry development
- Willingness to share data and outcomes publicly
How do I get the Hydrogen Headstart Program?
Applicants must:
- Read and understand the guidelines.
- Ensure eligibility for the funding. Applicants that do not meet all the eligibility criteria will not be considered.
- Deliver the project as outlined in the application.
- Provide complete information requirements.
To increase chances of securing funding, applicants must:
- Clearly align the project with Hydrogen Headstart objectives.
- Show the project produces renewable hydrogen at commercial scale using 100 % renewable electricity.
- Demonstrate contribution to Australia’s decarbonisation and clean-energy transition.
- Highlight economic, social and environmental benefits, including regional development and First Nations participation.
- Provide evidence of a qualified and experienced project team with strong governance and delivery capability.
- Present a robust technical design and feasible implementation plan with clear timelines.
- Include a detailed risk-management plan addressing supply, construction and operational risks.
- Supply a comprehensive financial model and justify the requested Headstart Production Credit (HPC).
- Show secured or credible pathways to equity, debt and offtake agreements.
- Commit to knowledge sharing and industry learning through ARENA’s Knowledge Sharing Plan.
- Demonstrate adherence to Community Benefit Principles—good jobs, local procurement, training and inclusivity.
- Provide evidence of sound climate performance and transparent governance.
- Ensure all required documents (Project Plan, Financial Model, Community Consultation Plan, etc.) are complete and consistent.
- Maintain open communication with ARENA and respond promptly to any information or due-diligence requests.
Information to prepare for the Hydrogen Headstart Program application
Applicants should prepare:
- Project Plan (up to 30 pages for EOI / 150 for Full Application)
- Project Summary Spreadsheet and Financial Model
- Risk Management Plan and Community Consultation Plan
- Gender Equality Plan
- First Nations Recruitment, Procurement and Engagement Plan
- Funding Agreement Compliance Table and responses to ARENA templates
- Evidence of technical feasibility, offtake arrangements, land tenure, and approvals status
Applying for the Hydrogen Headstart Program
All applications are completed via the online application form on ARENANet, accessible directly from the program webpage
Register your interest with GrantHelper to explore your alignment with this grant and how we can assist you to increase your chances of success.
Hydrogen Headstart Program resources
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