Clean Energy Supply Chain Diversification Program – Round 1

17 December 2024

Introduction

The Clean Energy Supply Chain Diversification Program will support the implementation of the Quad Statement of Principles on Clean Energy Supply Chains in the Indo-Pacific, and will contribute to achieving the Indo-Pacific’s collective energy security and emissions reduction goals to support the transition to a net zero future.

The objectives of the Program are to:

• help develop and diversify solar PV, hydrogen electrolyser and battery supply chains in the Indo-Pacific  
• address vulnerabilities in solar PV, hydrogen electrolyser and battery supply chains in the Indo-Pacific to help them become more resilient
• accelerate the development of investment-ready solar PV, hydrogen electrolyser and battery supply chain projects in the Indo-Pacific.

The Program will be open for applications from Friday, 6 December 2024 until Monday, 10 February 2025.

Funding available

A total of $50M is available for the Program over FY25 to FY28. For this Round 1, up to $25M is available with grants of between $100K to $2.5M, up to 95% of total eligible expenditure. Contributions to the project can be cash or in-kind.

Projects must be completed by 31 March 2028.

Applicant requirements

Joint applications are mandatory. The consortium must include an Australian organisation who must apply on behalf of the group, plus at least one organisation from the Indo-Pacific economy (see Table 1 below).

As an additional project partner (or partners), organisations domiciled in India, Japan and United States of America can also be included as part of a consortium.

Eligible projects and activities 

To be eligible, a project must be aimed at developing, diversifying and/or reducing vulnerabilities in solar PV, hydrogen electrolyser and/or battery supply chains in the Indo-Pacific. 

Your project must focus on one or more of the following stages of solar PV, hydrogen electrolyser and/or battery supply chains:

• raw material processing:
  • For solar PV, this means processing and refining raw materials into precursors for PV modules and balance of plant components.
  • For batteries, this means processing and refining raw material into precursors for battery materials.
  • For hydrogen electrolysers, this means processing and refining raw materials into precursors for electrolysers.
    
• manufacturing of components:
  • For solar PV, this includes polysilicon production, ingot/wafer production, cell manufacturing, balance of plant such as framing, solar glass, racking, mounting structure cables and inverters.
  • For batteries, this includes manufacturing specialised battery components: cathode and anode materials, electrolytes, separators, and casings.
  • For electrolysers, this includes manufacturing specialised electrolyser components: cathode and anode materials, electrolytes, separators, membranes, and casings.
• assembly:
  • For solar PVs, this means assembly of cells to produce PV modules.
  • For batteries, this means battery cell production, battery pack assembly, including electronics, sensors and battery management system. This covers both electric vehicle and stationary storage application.
  • For hydrogen electrolysers, this means fabrication of electrolysers.
• recycling:
  • For solar PV, this is the recovery of materials, metals, and critical minerals in cathode/anode.
  • For batteries, this is the recovery of critical materials, cathodes, anodes.
  • For hydrogen electrolysers, this is the recovery of materials/metals, and critical minerals in cathode/anode.   

Eligible projects can include R&D projects or feasibility studies, and activities can include:

• purchases of materials and equipment
• trialling, feasibility testing, demonstration of equipment, technology and or new processes
• process design and engineering
• project planning
• knowledge sharing activities, including workshops, meetings and the exchange of personnel to foster collaboration between industry in Australia and eligible Indo-Pacific project partners
• training and development activities to build expertise.

Project location

Your project can include activities at different locations, as long as they are undertaken in Australia and/or in one or more Indo-Pacific economies. Project expenditure must occur only in Australia or an Indo-Pacific economy. 

Feasibility studies must be for facilities that would be constructed in an Indo-Pacific economy.

Indo-Pacific economies

Table 1: Eligible Indo-Pacific economies

Guidance on key vulnerabilities

One of the objectives of the program is to address vulnerabilities in solar PV, hydrogen electrolyser and battery supply chains in the Indo-Pacific. The International Energy Agency (IEA) identified the most vulnerable parts of solar PV, hydrogen electrolyser and battery supply chains to be the following:

• mineral and metal supplies and processing:
  • solar: copper; aluminium; polysilicon
  • batteries: graphite; cobalt; nickel; manganese; lithium
  • electrolysers: platinum/palladium; iridium; nickel.
• manufacturing and construction:
  • solar: PV modules; PV cells; ingots/wafers
  • batteries: battery active materials; cathode and anode production; cell manufacturing
  • electrolysers: alkaline electrolysers; PEM electrolysers.

Further information can be found here.