Copenhagen Infrastructure Partners (CIP) has secured A814m (€464m) through the Australian Government’s Hydrogen Headstart programme for a green hydrogen project in Western Australia.
The Murchison Green Hydrogen project is set to produce approximately 1.8 million tonnes of green ammonia annually, primarily for export to Asian markets. Located 20 km north of Kalbarri in the Mid West region and powered by 6GW of onshore wind and solar generation, the project “represents a significant milestone” in advancing Australia’s green hydrogen economy.
Shohan Seneviratne, CEO of Murchison Green Hydrogen, said, “We are committed to contributing to Australia’s green hydrogen ambitions by creating local jobs, supporting skills development and sharing project benefits with local communities, including First Nations.
“We appreciate the support from the Australian Government, Minister Bowen, and ARENA and commend their leadership, vision and collaboration to make this project and the Australian hydrogen industry a reality.”
Delivered by the Australian Renewable Energy Agency (ARENA), the funding will be paid at production milestones over 10 years to help accelerate development.
Hydrogen Headstart is enabling large-scale renewable hydrogen projects like Murchison to get going by bridging the commercial gap between the cost of producing renewable hydrogen and the market price.
As a production-linked incentive, the programme will support the industry’s growth with an approach that pays on success.
This complements the new Hydrogen Production Tax Incentive, which recently passed in Parliament.
Together, this production support could provide A$8bn over 10 years to assist Australia’s emerging renewable hydrogen industry.
Minister for Climate Change and Energy Chris Bowen said: “Australia has one of the largest renewable hydrogen project pipelines in the world.
“This support is about unlocking that private capital to help realise our potential, not only to become a renewable energy superpower but create a Future Made in Australia with real jobs right now.”