Funding to establish hydrogen hubs in regional Australia

You're not eligible if your, or a project partner's, organisation has been included on the National Redress Scheme's list of Institutions that have not joined or signified their intent to join the Scheme.

You are also not eligible if you're:

• an individual
• a partnership
• an unincorporated association
• any organisation not included in section 4.1 of the guidelines
• a corporate or non-corporate Commonwealth entity.

First we review your application against the eligibility criteria. Only eligible applications will then proceed to the assessment stage.

A committee comprised of or advised by independent technical and industry experts and Australian government representatives will then assess eligible applications against the assessment criteria.

We consider your application on its merits, based on:

• how well it meets the criteria
• how it compares to other applications
• whether it provides value with relevant money.

When assessing whether the application represents value with relevant money, we will have regard to the:

• overall objectives of the grant opportunity
• evidence provided to demonstrate how your project contributes to meeting those objectives
• relative value of the grant sought.

You may be required to attend an interview with the Committee as part of the assessment of your application. The Minister will make the final decision on which projects receive funding.

To be competitive you must score highly against all of the assessment criteria.

• Assessment criterion 1: The extent that your proposed project will facilitate the development of a regional industrial hub and accelerate the creation of an export and domestic clean hydrogen industry (30 points).
• Assessment criterion 2: The extent that your project will utilise and support existing industrial capacity and infrastructure to build an ongoing Australian clean hydrogen capability and contribute to its long-term viability (20 points).
• Assessment criterion 3: Your capacity, capability and resources to establish a hydrogen hub (30 points).
• Assessment criterion 4: The impact of grant funding (20 points).

If your application is successful, you’ll receive a written offer. If you're unsuccessful, we’ll notify you in writing and give you the chance to discuss the outcome with us.

As a successful applicant, you must enter into a grant agreement with the Commonwealth.

The grant agreement will specify:

• the reporting requirements
• payment schedule
• milestones necessary to receive payments.

We’ll make the first payment when the grant agreement is executed.

We’ll make subsequent payments after we have received and accepted the required report. The report must show progress against your project milestones. We'll make all payments by direct credit into a nominated bank account.

We know many businesses have concerns about the impact of COVID-19 on grant applications and grant management. When preparing your application, you need to take into consideration the timeframes and any constraints that may impact the delivery and participation in workshops and other activities resulting from the impact of the COVID-19 pandemic. Projects need to be designed to ensure participants’ safety and health.

You can find further COVID-19 government financial assistance and support for Australian businesses on our coronavirus information and support for business page.

Slide 1

Activating a Regional Hydrogen Industry - Clean Hydrogen Industrial Hubs

15 October 2021

Supporting economic growth and job creation for all Australians | industry.gov.au

Slide 2: Acknowledgement of Country

Welcome

Acknowledgement of Country

The Department of Industry, Science, Energy and Resources recognises the First Peoples of this nation and their ongoing connection to culture and country.

We acknowledge First Nations Peoples as the Traditional Owners, Custodians and Lore Keepers of the world's oldest living culture and pay respects to their Elders past, present and emerging.

We would like to extend that acknowledgement to any Aboriginal people in today’s session and show our respect for the land that we meet on today, for us in Canberra it’s Ngunnawal Country.

Slide 3: Our speakers

• Chris Simkus
• Manager
• Hydrogen Initiatives
• Catherine Zerger
• A/g General Manager
• Clean Hydrogen Industrial Hubs

Slide 4: Housekeeping and Slido login

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Slide 5: Agenda

• Policy Context
• Program Overview
• Eligibility
• Assessment
• How to apply
• Questions

Slide 6: Policy context

• Low Emissions Technology Statement
• Australia’s National Hydrogen Strategy 2019
• The Australian Government is committed to being a world leader in the clean hydrogen industry.

Slide 7: Australia: All the key ingredients for hydrogen on a global scale

Our vision is to create a competitive clean hydrogen industry that is a major global player by 2030

Natural competitive advantages for creating a future hydrogen industry:

• Vast renewable (solar and wind) resources
• Extensive fossil fuel energy reserves & stable carbon storage sites
• Abundant land and existing high quality export infrastructure
• Established and reputable global energy exporter with strong track record

Slide 8: Why clean hydrogen?

• Energy is linked to over 70% of global emissions
• Need a clean fuel alongside clean electricity production to decarbonise
• Clean hydrogen and its derivatives (e.g. ammonia) could be this fuel

Slide 9: Hydrogen Hubs

• Hydrogen Hubs are a priority action under the National Hydrogen Strategy
• Hydrogen Hubs are regions where various producers, users and potential exporters of hydrogen across industrial, transport, export and energy markets are co-located.

Slide 10: Objectives

• leverage existing infrastructure, knowledge and workforce for a least cost pathway to a viable clean hydrogen industry
• progress the establishment of hubs that stimulate demand and facilitate the production of clean hydrogen for domestic and export markets
• enable economic, environmental and social opportunities in regional communities by locating hubs in regional areas of Australia
• support the growth and jobs of Australian industry in the production and application of clean hydrogen
• support innovation in processing, distribution and use of clean hydrogen
• support complementary industries establishing and thriving around hydrogen supply chains by encouraging sector coupling
• build and strengthen international partnerships, build export pathways and encourage technological exchange and innovation.

Slide 11: Two grant opportunities

• Development and Design Grants - supporting Australian industry on the initial development, feasibility and design work needed to advance Hydrogen Hub concepts
• Implementation Grants - supporting Australian industry to roll-out and establish Hub projects in regional Australia

Eligible organisations are encouraged to apply for both grant opportunities

Slide 12: Regions

The Australian Government is focused on the timely establishment of Clean Hydrogen Industrial Hubs and the realisation of regional benefits.

The Australian Government considers the following locations to be priority prospective hub locations, based on interest of industry and the location’s existing capability, infrastructure and resources:

• Bell Bay (TAS)
• Darwin (NT)
• Eyre Peninsula (SA)
• Gladstone (QLD)
• Hunter Valley (NSW)
• Latrobe Valley (VIC)
• Pilbara (WA)

Although these locations are considered the most advanced, applications are not restricted to these locations and applicants are able to define the ‘region’ to which their application relates.

Slide 13: Development and Design Application timing, grant amount and grant period

Applications open 28 September 2021

Applications close at 22 November 5pm AEDT.

Slide 14: Implementation Grants - Application timing, grant amount and grant period

Applications open 28 September 2021

Applications close 22 November 5pm AEDT.

What funding is available?

• $434 million available
• Minimum grant = $30 million. Maximum grant = $70 million
• Grant is for up to 50% of eligible project costs
• Grantee contributions to the project must be cash
  • Applicants may use funding from other Commonwealth, State, Territory or local government grants (the CCUS Hubs and Technology program, for example) to fund the project expenditure not covered by this program.
  • However, no more than 50 per cent of the total eligible project expenditure can be funded from Commonwealth government grants.

Funding period

• The maximum project period is up 3.5 years.

Slide 15: Eligibility Criteria

To be eligible applicants must:

• have an Australian Business Number (ABN)

And be one of the following entities:

• an entity, incorporated in Australia
• State/Territory Government agency or body.

Joint applications

The application must be a joint application with at least one and preferably multiple project partners.

Slide 16: Additional eligibility requirements

We can only accept applications:

• where you certify that the project is supported by your board (or chief executive officer or equivalent if there is no board), and that you can complete the project and meet the costs of the project not covered by grant funding
• where you agree to publicly share knowledge and information about and resulting from your project
• where you provide all mandatory attachments (e.g letters of support, project plan, project budget)

We cannot waive the eligibility criteria under any circumstances.

Slide 17: Who is not eligible?

You are not eligible to apply as a lead applicant if you are:

• an organisation, or your project partner is an organisation, included on the National Redress Scheme’s website on the list of ‘Institutions that have not joined or signified their intent to join the Scheme’ (www.nationalredress.gov.au)
• an individual
• partnership
• unincorporated association
• any organisation not included in section 4.1 of the guidelines
• a corporate or non-corporate Commonwealth entity.

Local government and Commonwealth entities are not eligible lead applicants but these entities can be part of a joint application so long as the lead applicant is eligible.

Slide 18: Development and Design Additional eligibility requirements

To be eligible your project must:

• be aimed at setting out the design work and business case for establishing a hydrogen hub consisting of co-located sources of hydrogen demand and production to stimulate demand and facilitate the production and use of clean hydrogen for domestic and export markets, leveraging on the existing industrial and energy resources in the region

Activities that are not eligible for funding include:

• research projects without a clear, short to medium term pathway to establishing a hub for the production and use of clean hydrogen for domestic and export markets

Slide 19: Implementation Additional eligibility requirements

To be eligible your project must:

• be aimed at establishing a hydrogen industrial hub consisting of co-located sources of hydrogen demand and production to stimulate demand and facilitate the production and use of clean hydrogen for domestic and export markets, leveraging the existing industrial and energy resources in the region
• have at least $60 million in eligible expenditure.

Slide 20: Assessment

Eligibility

We first review an application against the eligibility criteria. If eligible, we will then assess it against the assessment criteria. Only eligible applications will proceed to the assessment stage.

Merit

We consider an application on its merits, based on:

• how well it meets the criteria
• how it compares to other applications
• whether it provides value with relevant money.

There are 4 assessment criteria – all must be addressed in the application.

When assessing whether the application represents value with relevant money, we will have regard to:

• the overall objectives of the grant opportunity
• the evidence provided to demonstrate how your project contributes to meeting those objectives
• the relative value of the grant sought.

Slide 21: Assessment of applications

• We will establish a committee comprised of or advised by, independent experts and Australian government representatives to assess applications.
• The committee may seek additional advice from other independent experts.
• The committee will recommend projects to the Minister for Energy and Emissions Reduction who will make the final decision.

Slide 22: Development and Design Assessment criteria

1. How your Hub Development and Design project aligns with the objectives of the Activating a Regional Hydrogen Industry: Clean Hydrogen Industrial Hubs program (30 points)
2. Your plans to advance the Clean Hydrogen Industrial Hub to investment ready status (30 points)
3. Your capacity, capability and resources to undertake development and feasibility activities and ultimately deliver your hub project (30 points)
4. The impact of grant funding (10 points)

The Guidelines outline the points to be addressed to demonstrate how you meet each criteria.

Slide 23: Implementation Assessment criteria

1. The extent that your proposed project will facilitate the development of a regional industrial hub and accelerate the creation of an export and domestic clean hydrogen industry (30 points).
2. The extent that your project will utilise and support existing industrial capacity and infrastructure to build an ongoing Australian clean hydrogen capability and contribute to its long-term viability (20 points)
3. Your capacity, capability and resources to establish a hydrogen hub (30 points)
4. The impact of grant funding (20 points)

The Guidelines outline the points to be addressed to demonstrate how you meet the criteria.

Slide 24: Implementation plan

• If successful for an Implementation grant , you must provide a detailed implementation plan for establishing your hydrogen hub project in the first six months of the project or earlier.
• A committee comprised of or advised by independent technical and industry experts and Australian government representatives, convened by the department, must endorse your implementation plan.

Slide 25: How to apply

Before applying, you should read and understand the relevant guidelines, the sample application form and the sample grant agreement published on business.gov.au and GrantConnect.

To apply, you must:

• complete the online application form via business.gov.au
• provide all the information requested
• address all eligibility and assessment criteria
• include all necessary attachments.

The size limitations for attachments in the application are 2mb per attachment and a total of 20mb per application. Please call the contact centre for instructions on how to provide attachments over that threshold.

Remember 5pm AEDT is a hard cut-off for submission in the portal and providing attachments . Please be aware of your time zone in relation to AEDT.

The system will automatically close so don’t leave your submission to the last minute.

Slide 26:Program guidelines

The program guidelines provide important information on program objectives and outcomes, eligibility and assessment criteria and how the applications are assessed. The guidelines can be found at business.gov.au.

You should read the guidelines carefully before you fill out an application.

Slide 27: Slido login

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Slide 28: Questions?

More Information

• Program Pages and Program Guidelines through www.business.gov.au
• Updated FAQs are on business.gov.au and updated weekly
• Call 13 28 46

Slide 29: Thank You

Visit: www.business.gov.au or www.industry.gov.au/hydrogen

Email: hydrogenprograms@industry.gov.au

Supporting economic growth and job creation for all Australians |industry.gov.au