Developing hydrogen hubs for NSW FAQs

Hydrogen hubs are regions where various users of hydrogen across industrial, transport and energy markets are co-located.

Hubs help to minimise the cost of infrastructure, and support economies of scale in producing and delivering hydrogen to customers.

Hubs also facilitate opportunities for sectors to innovate and collaborate, while developing the workforce and skills needed to support a future hydrogen industry.

Hydrogen hubs will help NSW shift to a low carbon economy. This supports the Government’s plan to cut emissions by 70% by 2035 and achieve net zero by 2050.

Developing hydrogen hubs will benefit NSW by:

• reducing supply chain costs and making hydrogen commercially competitive with existing fuels
• unlocking a green hydrogen industry to transform our regional economies and prepare NSW for the future as global markets decarbonise
• creating new jobs, improving energy security and providing businesses with more choices to increase revenue while reducing emissions.

The application process for the projects stream is a two stage competitive process:

1. Stage 1: expression of interest (EOI). This stage closed on 11 February 2022.
2. Stage 2: full application. This stage closed on 12 August 2022, and 10 projects are currently being assessed. Read more about these projects.

Section 5 of the guidelines provides more details on both stages.

Yes. Eligibility and merit criteria will be assessed during both stages.

EOIs were assessed against the eligibility criteria to determine the eligible applications. Full applications are being assessed against the merit criteria.

Yes. Grant funding can be awarded to different projects submitted by the same applicant.

Yes. Applicants can apply to receive funding from other government entities, such as the Commonwealth Government’s Department of Industry, Science, Energy and Resources and the Australian Renewable Energy Agency (ARENA).

Where possible, we have aimed to streamline the hydrogen hubs application process with the relevant government entities. If you have applied for funding from another government entity, and would like this to be considered in your hydrogen hubs application, you must:

• have applied to the other government entity before the hydrogen hub initiative full application submission deadline on 12 August 2022 at 5pm (AEST)
• have consented to the full application and associated information being shared with the other government entity.

Section 4.2 of the guidelines provides more information on joint funding opportunities.

We aim to award grant funding in the first half of 2023.

Payment of grant funding is based on project milestones that must be verified. As part of the application process, applicants are required to provide 4 or 5 suggested milestones and associated grant funding payment amounts that will occur when each milestone is completed.

Grant funding payments should at least be matched by applicant contributions to eligible expenditure within the milestone period.

Section 8.1 of the guidelines provides more information on eligible expenditure. Applicants must demonstrate the project requires the requested amount of grant funding to proceed.

Section 4 of the guidelines provides more details about grant funding support.

As outlined in section 2.3 of the guidelines, we will prioritise projects that are fully operational and have used all grant funding received by June 2025.

To ensure the competitive application process is fair, we won’t accept any material changes to the original project specifications between lodgement of the EOI application and financial close.

The office will determine, at its discretion, whether your changes are material in nature. If a material change occurs, we reserve the right to determine if the changes are acceptable and support the initiative objectives.

Section 7.2 of the guidelines provides more information on material changes.

Unexpected events may arise which can impact on your project’s progress, such as delays in equipment delivery. You should make sure your project milestones are as realistic as possible and include contingencies.

You should also familiarise yourself with the funding agreement template available on our website. This template includes obligations for reporting on your project’s progress. It also provisions for the termination of the contract and repayment of the office grant funding if delays cause you to be in breach of the contract.

To ensure the competitive application process is fair, we won’t accept any material changes to the original project specifications between lodgement of the EOI application and financial close.

Section 7.2 of the guidelines states that a material change may include, but is not limited to, an increase in the size of grant requests greater than 10% of the grant request at the EOI stage.

The office may, at its discretion, determine it is appropriate to allow an increase in the amount of an applicant’s request for grant funding. The office may exercise discretion in this regard if it is considered to represent value for money and is in line with the Initiative objectives. This would be subject to the applicant meeting any conditions imposed in an offer to negotiate letter.

Section 7.2 of the guidelines provides more information on material changes.

We are seeking registrations of interest from existing or potential hydrogen consumers. Hydrogen consumers are defined as those who are ready to purchase hydrogen from the hubs now or at some point in the future. For example, if enabling technology becomes available and cost effective.

Section 2.2.2 of the guidelines provides more information on registering as a hydrogen consumer.

Registering as a hydrogen consumer may enable you to be included as one of the end users in a project. This may allow you access to the project’s supply chains. If the project is successful, you may also have access to grant funding to support your consumption.

Registering will also enable potential suppliers outside of the hydrogen hub initiative to contact you to discuss how they could supply you with hydrogen to meet your requirements.

You can register as a hydrogen consumer online via our registration portal.

When you register, please provide details of your potential hydrogen demand, including quantity, relevant timeframes and price requirements.

You must agree to this information being shared publicly on our website and through our collaboration platform.

There is no grant funding available for the hydrogen consumer registrations stream. Hydrogen consumers can only access grant funding if they join a green hydrogen project and are part of a full application that is successful.

There is no limit to how many projects a hydrogen consumer can join for the full application stage.

The level of commitment and engagement of a project’s offtakes, including hydrogen consumers, will be evaluated during the merit assessment process.

Proponents of green hydrogen deployment projects are responsible for incorporating offtake from hydrogen consumers into their project. If a hydrogen consumer joins a project that isn’t successful at the full application stage, they may be able to negotiate directly with successful applicants for the supply of hydrogen. This is subject to any contractual arrangements that are in place.

If a hydrogen consumer is part of multiple successful projects, they will need to consider any committed contractual obligations.

Hydrogen consumer registrations will be open for the whole application and assessment period of the projects stream. 

The office has legal obligations under the Privacy and Personal Information Protection Act 1998 (NSW) in relation to the collection, storage, access, use and disclosure of personal information.

If collecting your personal information, the office will provide you with a privacy statement at the time of collection that details how this information will be managed in accordance with privacy law.

Those registering for the hydrogen consumer stream, must agree to the information in their registration being shared publicly.

In your application, you must identify what information is commercial-in-confidence and to be treated confidentially.

Section 7.7 of the guidelines provides more information on how the office will treat commercial-in-confidence information, and the circumstances in which it may be disclosed to third parties.