Grant funding to support commercial-scale green hydrogen projects in order to increase the production and availability of green hydrogen across the state.
Key information
- Status: Closed
- Grant amount: up to 50% of the project's eligible expenditure
- Application opened: 29 October 2021
- Application closed: 11 February 2022, 5:00 pm
Program objective
Our hydrogen hubs initiative is a key action under the NSW Hydrogen Strategy, which sets out our plan to develop a green hydrogen industry.
We are supporting the development of hydrogen hubs to increase the production and availability of green hydrogen across the state. By 2030 we have a green hydrogen capacity target of 700 MW.
These hydrogen hubs will:
- improve air quality
- reduce our carbon emissions in hard-to-abate sectors
- provide businesses with more choices to increase revenue and reduce emissions
- create new jobs
- grow and diversify our economy
- improve our energy security.
The objectives of the initiative include:
- establishing hubs that demonstrate ‘end to end’ green hydrogen supply chains, including production, distribution and use
- activating new domestic markets, supporting new supply chains and testing commercial models for hydrogen in key sectors such as heavy transport and industrial
- building foundational knowledge, skills and supply chains that accelerate the development of the hydrogen industry in NSW, enabling the state to achieve its 50% emissions reduction target by 2030 while capturing long term opportunities from the hydrogen export market.
This program is funded and administered by NSW Treasury and Office of Energy and Climate Change.
Eligibility
Grant funding to support commercial-scale green hydrogen projects in NSW with confirmed agreements to sell green hydrogen. The projects must include at least 1 end user in the hub region and can also include end users outside the hub regions, both outside NSW and Australia
We are prioritising projects that can scale quickly and increase hydrogen demand.
Who can apply
The applicant must:
- hold an Australian Business Number (ABN)
- be:
- an Australian entity duly incorporated under the Corporations Act, and hold and comply with all necessary authorisations that are material to the conduct of the business of the applicant, or
- a Commonwealth entity under section 10 of the Public Governance, Performance and Accountability Act 2013 (Cth), or
- an Australian state or territory-owned body corporate, or a subsidiary of an Australian state or territory-owned body corporate, or
- an Australian state or territory local government or council, or
- In some limited circumstances, the department at its sole discretion may accept a legal entity other than that listed as meeting the applicant eligibility criteria. Any other entity wanting to apply to the initiative should contact the department.
- be the legal and beneficial owner of, or have all necessary rights to use, any intellectual property necessary to carry out the project
- agree to enter into an agreement with the department to publicly share knowledge and information about, and resulting from, the project described in the application
applicants should note that the grant funding recipient (if different to the applicant) must always comply with the eligibility criteria set out above.
The applicant must identify the proposed recipient of grant funding in the full application. The department will only enter into a funding agreement with the proposed recipient if they have been identified and assessed by the department during the full application.
The department may enter into a funding agreement with a different entity if that entity is majority owned and controlled by the proposed recipient assessed by the department during the full application.
If at the time of the full application the recipient is expected to be a different legal entity to the applicant, the applicant must clearly specify this in their application, and provide all details of the expected recipient. They must also:
- agree to share data about the project with the Department to help evaluate the initiative and improve the design of future programs
- disclose any legal proceedings or investigation, including litigation, arbitration, mediation or conciliation that is taking place, pending or (to the best of the applicant’s knowledge, after having made proper enquiry) threatened against you or a related body corporate (as defined in the Corporations Act)
- comply with:
- all obligations under employment contracts, industrial agreements and awards
- all codes of conduct and practice relevant to conditions of service and to the relations between the applicant and the employees employed by the applicant
- all applicable workplace health and safety legislation.
- hold all insurances required by law to be held by the applicant
- consent to the information sharing and disclosure requirements to enable hydrogen demand aggregation, consistent with the initiative objectives.
Who can’t apply
entities who are subject to any insolvency event, including the subject of an order or resolution for winding up or dissolution (other than for the purposes of reconstruction or amalgamation), or the appointment of a receiver, liquidator, administrator or similar
entities named on the list of persons and entities on the Australian Department of Foreign Affairs and Trade sanctions list.
Types of projects funded under this grant
Projects that:
- reduce NSW’s greenhouse gas emissions
- would not have gone ahead in the near term without the support of the initiative
- produce and use green hydrogen as defined in the project parameters with additional information and requirements in section 7.3 of the initiative guidelines
- demonstrate the use of hydrogen reduces existing emissions, and
- commit to use green hydrogen by 2025 and meet the renewable energy requirements set out in the project parameters and section 7.3 of the initiative guidelines.
Applicants must demonstrate to the department’s satisfaction that they have a project as defined in section 8.3 of the initiative guidelines.
Projects using hydrogen derived from fossil fuels with carbon emissions may be eligible if:
- the applicant demonstrates the use of hydrogen reduces existing emissions, and
- the contract includes a commitment to use green hydrogen by 2025 and meet the renewable energy requirements set out in the project parameters and section 7.3 of the initiative guidelines.
What can’t you apply for
Funding will be limited to no more than half a project’s eligible expenditure.
Grant funding is available for projects and can be used for any eligible expenditure related to the project. This includes any assets and equipment necessary for the use of hydrogen.
Ineligible expenditure includes:
- Activities that directly relate to NSW Government planning assessment processes. This includes biodiversity studies, heritage studies, noise, air quality and traffic studies, and water, waste and hazardous material studies.
- Expenditure related to the general operations and administration of the recipient entity that the recipient could reasonably be expected to undertake in the normal course of business.
- Expenditure on activities that a local, state, territory or Commonwealth government agency has the responsibility to undertake.
- Interest on loans for new and pre-existing capital items used for the project.
- Expenditure on the acquisition of land for a project.
- Sales or promotional activities that don’t directly support the successful completion of the project.
- Membership fees, donations, or any other expenditure that the department determines doesn’t directly support the successful completion of the project.
- Expenditure that doesn’t directly support the successful completion of the project.
Example projects
Projects must include either a new-build electrolyser or biomethane steam methane reformer to produce green hydrogen from renewable sources in NSW.
For example, the construction refuelling stations that are publicly available to refuel hydrogen vehicles.
Most recent recipients
What your application needs to include
Applicants must:
- complete all fields in the expression of interest application form
- include any additional information or documentation required to address the merit criteria.
Full details can be found in the Hydrogen hub initiative guidelines (PDF 759.84KB).
Prepare your application with this checklist
Prepare an expression of interest
complete the project EOI application form
- for questions regarding applications, contact hydrogen@planning.nsw.gov.au
- EOI responses received after the closing date will be deemed ‘late’ and registered separately. A late response will only be admitted for assessment at the department’s discretion.
Prepare a full application
The full application form will be issued to shortlisted applicants through the application portal. Guidance will be issued on additional evidence requirements to address the merit criteria to shortlisted applicants.
Address the eligibility criteria
To be eligible for grant funding, an application must meet all eligibility criteria, for both applicant eligibility and project eligibility.
For details, see section 3.1 of the initiative guidelines.
Address the assessment criteria
Only applications that satisfy the eligibility criteria will proceed to assessment against the merit criteria.
All merit criteria must be addressed for applications to be competitive:
- contribution to the initiative objectives
- applicant capability and capacity
- activity design, methodology, risk and compliance
- financial viability and co-funding commitment
- knowledge sharing.
For details, see section 3.2 of the initiative guidelines.
Start the application
Submit an EOI via the grants portal.
Note: applications for this program have closed.
After the application is submitted
Successful applications will be decided by: Deputy Secretary, Energy, Climate Change and Sustainability, within the Office of Energy and Climate Change
Application and assessment processes are competitive and have 2 stages:
- stage 1: expression of interest (EOI)
- stage 2: full application.
Eligibility and merit criteria are assessed at both the EOI and full application stages.
EOI applications will be assessed and successful applicants will be shortlisted to progress to the full application stage. Unsuccessful applicants of the EOI stage will be notified at this time.
Shortlisted applicants will then have up to 3 months to complete and submit the full application form.
Shortlisted full applications will then be assessed and successful applicants will receive a non-binding offer to negotiate a funding agreement for the grant funding. Unsuccessful applicants of the full application stage will be notified at this time.