The Clean Energy Finance Corporation has welcomed the launch of the AUD300 million (US$192.48 million) Advancing Hydrogen Fund that seeks to finance the growth of a clean Australian hydrogen industry. 

The CEFC Advancing Hydrogen Fund will draw on existing CEFC finance. In line with the CEFC Act, projects seeking CEFC finance through the Advancing Hydrogen Fund are required to be commercial, draw on renewable energy, energy efficiency, and/or low emissions technologies and contribute to emissions reduction.

Through the Advancing Hydrogen Fund, the CEFC expects to provide either debt or equity finance to eligible larger-scale commercial and industrial projects, typically requiring AUD10 million (US$6.4 million) or more of CEFC capital. CEFC investments typically include co-financiers and/or equity partners where possible.

CEFC seeks to invest in projects included in the ARENA Renewable Hydrogen Deployment Funding Round. The ARENA Round is an AUD70 million (US$44.8 million) grant program aiming to demonstrate the technical and commercial viability of hydrogen production at large-scale using electrolysis.

In considering investment proposals for the Advancing Hydrogen Fund, the CEFC prioritizes projects that promote the objectives of the National Hydrogen Strategy and that focus on one or more of the following:

• advancing hydrogen production projects
• developing export and domestic hydrogen supply chains, including hydrogen export industry infrastructure
• establishing hydrogen hubs
• other projects that assist in building domestic demand for hydrogen.