The second round of ARENA’s Hydrogen Headstart program is now open, inviting Expressions of Interest from renewable hydrogen developers until 8 December 2025. Backed by $2 billion in funding announced in the May 2024 Federal Budget, the program will support large-scale hydrogen production projects aimed at making renewable hydrogen commercially viable in Australia.
Round 2 builds on lessons from the first funding round and extensive consultation undertaken in mid-2025. This round’s focus is on projects that not only scale production but also drive innovation in cost reduction and operational efficiency. ARENA has called for proposals that demonstrate improvements in plant construction and design, electrolyser performance, and flexible operations to lower electricity costs. Projects that strengthen end-use infrastructure for hydrogen in high-demand sectors—such as green ammonia, steel, alumina, and long-distance heavy transport—are also encouraged.
ARENA CEO Darren Miller said the next phase of Hydrogen Headstart aims to accelerate the commercial development of renewable hydrogen by bridging the current gap between ambition and delivery.
“ARENA is aiming to bridge the gap between ambition and reality. We know that renewable hydrogen will play a critical role in decarbonising heavy industry, particularly in sectors where electrification is not feasible or alternatives are limited,” said Mr Miller.
He added that industry leadership and consistent support are essential to build confidence among developers and investors.
Funding will be delivered through the Hydrogen Headstart Production Credit (HPC) mechanism, providing revenue support per unit of renewable hydrogen produced over a 10-year operational period. Applicants will go through a two-stage competitive process: an Expression of Interest followed by a Full Application phase for shortlisted projects.
Round 2 continues ARENA’s broader effort to strengthen Australia’s hydrogen industry. Over the past eight years, the agency has invested more than $370 million across 65 hydrogen projects, from early research to commercial trials, including the first two Headstart projects announced earlier this year.
The Hydrogen Headstart program supports the goals of the National Hydrogen Strategy by fostering domestic decarbonisation, expanding clean manufacturing and export industries, and developing skilled workforces and supply chains for future deployments.
Expressions of Interest for Round 2 are open until 5 pm AEDT on 8 December 2025. Applicants are encouraged to review the program guidelines, eligibility criteria, and required templates before submitting their proposals.
