CEFC

CLEAN ENERGY FINANCE CORPORATION

The Clean Energy Finance Corporation (CEFC) is a statutory authority established by the Australian Government under the Clean Energy Finance Corporation Act 2012 and has been credited with AUD$10 billion to invest in the clean energy sector.

In May 2020, the Australian Government’s Clean Energy Finance Corporation Investment Mandate Direction 2020 directed the CEFC to make available up to AUD$300 million in debt and equity finance to invest in projects that align with the National Hydrogen Strategy, to support the development of an Australian hydrogen industry.

The Advancing Hydrogen Fund draw on existing CEFC finance. In line with the CEFC Act, projects seeking 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. CEFC investments typically include co-financiers and/or equity partners where possible.

In May 2021, the CEFC commissioned the Australian Hydrogen Market Study to help identify investment opportunities for hydrogen producers, large-scale energy users and potential investors. It assesses the economic competitiveness of green hydrogen over three-time frames – 2020, 2030 and 2050 – and includes detailed analysis of the economic, technology and infrastructure factors that would underpin the green hydrogen industry.

The study also listed the introduction of a Guarantee of Origin certification scheme as an important regulatory development to accelerate industry development (such a scheme is identified as a priority action under Australia’s National Hydrogen Strategy).

In June 2021, the CEFC announced its first hydrogen-related investment; the investment of AUD$750,000 in Hysata, a company officially launched in June 2021 seeking to commercialise a new type of electrolyser technology developed at the University of Wollongong. This investment was undertaken through the CEFC specialist Clean Energy Innovation Fund. In August 2022, the CEFC announced a further AUD$10 million investment in Hysata in its (Hysata’s) Series A funding round (again via the CEFC specialist Clean Energy Innovation Fund).

In November 2021, the CEFC announced its first investment through the Advancing Hydrogen Fund, involving a commitment of up to AUD$12.5 million to Ark Energy Corporation in support of its SunHQ Hydrogen Hub project.

In June 2023, the CEFC announced:

• an AUD$2 million investment allocation to HydGene Renewables as part of its AUD$6 million seed raise to establish a pilot plant to upcycle waste biomass sources to produce green molecules.
• it would be a source of additional financial backing for the 10 MW Hydrogen Park Murray Valley Project in Victoria which reached financial close in June 2023.

In July 2023, the CEFC announced receipt of a new Investment Mandate that, among other changes, provides direction for how the CEFC will invest new budget allocations of AUD$20.5 billion for Rewiring the Nation, the Household Energy Upgrades Fund and the Powering Australia Technology Fund.

 

Updated: July 2023