Financing Models for Early-Stage Scaling

​​Kathryn explained that scaling Australia’s hydrogen sector requires a mixed financing approach, combining concessional debt, government grants, revenue support mechanisms, commercial debt, and equity participation. These instruments are designed to help projects reach financial close while bridging the early-stage funding gap.

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Offtake Structures and Risk Mitigation

​​Offtake risk remains a critical concern for investors. CEFC advocates for “take-or-pay” contracts with long-term price certainty and sees value in involving offtakers as equity participants to align incentives across development, construction, and operational phases. Such arrangements enhance the bankability of projects and help close the financing gap associated with the green premium.

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Policy Support and Investor Confidence

​​Kathryn noted that Australian government policies — including hydrogen production tax incentives and pilot programs — have provided clarity and confidence for investors. While these measures help bridge the green premium gap, further work is needed to fully unlock private capital, particularly in sectors where hydrogen adoption introduces additional costs.

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Applications and Regional Momentum

​​The CEFC is observing strong momentum in green hydrogen for ammonia, steel decarbonisation, and high-temperature industrial heat. Over the longer term, hydrogen is expected to play a role in synthetic fuels, maritime operations, and potentially aviation. Geographic regions attracting capital are primarily those with supportive policy frameworks and infrastructure conducive to large-scale hydrogen deployment.

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