This article is part of our New Energy Insights series from our Energy, Infrastructure and Resources team. Stay tuned for regular updates and commentary on topical issues across the sector.
The NSW Department of Planning, Industry and Environment (DPIE) has extended the EOI application period for funding under its $70 million hydrogen hub initiative by two weeks with applications closing on 11 February 2022.
The hydrogen hub initiative forms part of the Net Zero Industry and Innovation Program unveiled by the NSW Government in 2021 as part of its Hydrogen Strategy.
The initiative is aimed at developing hydrogen hubs in the Hunter and Illawarra regions but also aims to support hydrogen industries in other strategic locations across NSW. The aim of the hubs initiative is to reduce NSW’s carbon emissions in hard-to-abate sectors, improve air quality, grow and diversify the economy, create new jobs, improve energy security and provide businesses with more choices to increase revenue and reduce emissions.
Funding will be prioritised for projects that can scale quickly and support increasing hydrogen demand which is consistent with NSW’s demand-side approach to developing its hydrogen industry. The initiative will support the development of hydrogen hubs through two streams:
- Projects – EOIs for grants for commercial scale green hydrogen projects; and
- Hydrogen consumers – registrations of interest to identify hydrogen consumers and sources of demand across NSW and within hub regions (noting that grant funding will not be provided under this stream).
Government funding will be a crucial component in any hydrogen project. It is important that project developers do not “self-select” themselves out of funding programs. Therefore, we strongly recommend project developers seek out professional advisors to help assess their hydrogen project’s suitability under the hydrogen hub initiative. We at Hamilton Locke are already engaged with our clients in relation to this funding initiative and we will be assisting in preparing applications to the DPIE. Please get in touch with our New Energy lead, Matt Baumgurtel, should you wish to discuss.
For more details on the hydrogen hub initiative and the eligibility and merit criteria, click here.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
