Japan and Korea underpin six Australian hydrogen projects
- Six projects shortlisted to compete for $2 billion under the Hydrogen Headstart program, chosen from about 60 applicants.
- Final bids must be lodged by late June, with two or three successful projects to be selected later in 2024.
- Shortlisted schemes include KEPCO’s Newcastle project; Stanwell’s Queensland project with Iwatani, Kansai Electric and Marubeni; BP’s Kwinana ammonia and SAF project; a Porsche‑backed $1 billion green fuels project in Tasmania; and CIP’s Murchison targeting ~2 million tpa green ammonia.
- Hydrogen Headstart will be delivered as a 10‑year production credit (not a grant), and none of the six projects focus on pure hydrogen due to transport and cost challenges.
Shortlist and context
Japanese and South Korean investors are central to six projects shortlisted for $2 billion under the federal Hydrogen Headstart program; Andrew Forrest’s Fortescue Metals Group did not make the cut. The shortlist was drawn from about 60 applicants and underscores the importance of North Asian customers to Australia’s clean energy export strategy.
Notable projects
Shortlisted projects include Korea Electric Power Co’s Newcastle project; Stanwell Corporation’s central Queensland scheme, with Iwatani, Kansai Electric and Marubeni as foundation customers; BP’s ammonia and sustainable aviation fuel project at Kwinana; a Porsche‑backed $1 billion green fuels project in Tasmania; and the Murchison project in Western Australia, funded by Copenhagen Infrastructure Partners and supported by two Australian superannuation funds, which is targeting about 2 million tonnes a year of green ammonia for export.
Program structure and timeline
Hydrogen Headstart will fund “at least two flagship projects” and is structured as a production credit over 10 years to cover the gap between production cost and sale price rather than as a grant. Shortlisted proponents must lodge final bids by late June, with two or three winners to be selected later in 2024.
Sector outlook and reactions
Australia’s major projects list records 76 hydrogen projects, of which only three reached financial close this year. None of the six shortlisted projects focus on pure hydrogen due to transportation and cost challenges. Copenhagen Infrastructure Partners and ARENA said the program supports investor confidence and fast‑tracking the industry, while Hazer called for the scheme to be extended to technology ventures that convert natural gas to hydrogen.
Source: Hazer Group
