Advancing Hydrogen Fund
A new clean energy source for Australian industry
Momentum to identify Australia’s emerging green hydrogen opportunities gathered pace in 2020–21, with the CEFC working across the market to progress large-scale investment opportunities through the $300 million Advancing Hydrogen Fund. We are confident of making our first investment through the Fund in the 2021–22 year.
While large-scale investments in new technologies necessarily take time to develop, we were pleased to make our first hydrogen-related investment in Hysata, a new company created to commercialise innovative electrolyser production technology. Reflecting the start-up nature of Hysata, this investment was made through our Clean Energy Innovation Fund, rather than the Advancing Hydrogen Fund.
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Cost competitiveness of green hydrogen on the horizon
With Australia’s hydrogen industry in its infancy, we are working to lift understanding about investment opportunities among producers, large-scale energy users and investors. Our Australian hydrogen market study provided detailed analysis of the economic, technology and infrastructure factors that will underpin the green hydrogen economy.
Key findings:
- Green hydrogen is already approaching cost competitiveness for heavy trucking, buses and remote power
- Parallel advances in production and distribution costs, as well as ongoing technology evolution, will accelerate the commercial attractiveness of green hydrogen across key areas of the economy
- Large-scale development would be critical to driving down installation and commissioning costs, similar to the accelerated development experienced by Australia’s large-scale renewable energy sector