The Australian Renewable Energy Agency (ARENA) has announced that Copenhagen Infrastructure Partners’ (CIP) Murchison Green Hydrogen Project in Western Australia is the first recipient of funding from its Hydrogen Headstart Program.
The project will receive $814 million in funding under round 1.
The Murchison Green Hydrogen project, located 15 km north of Kalbarri, Western Australia, will include a 1.5 GW electrolysis plant and a facility capable of producing 3,600 tonnes of ammonia per day.
It will operate completely off-grid, powered by 1.2 GW of solar photovoltaic and 1.7 GW of onshore wind generation, along with a 600 MW / 1,200 MWh battery energy storage system and a new desalination plant for sustainable water sourcing.
ARENA CEO Darren Miller stated that the Hydrogen Headstart Program aims to bridge the gap between the market price and production costs of renewable hydrogen.
The funding is provided as a production credit, meaning it is only distributed once projects are operational.
Murchison Green Hydrogen CEO Shohan Seneviratne said the funding reinforces their shared vision with the Australian government to establish a leading green hydrogen industry in Australia.
The Australian Hydrogen Council (AHC) welcomed the announcement, with CEO Dr Fiona Simon highlighting the importance of Hydrogen Headstart in supporting large-scale hydrogen projects.
Hysata also lauded the announcement, noting the potential for such programs to establish a competitive domestic supply chain.
ARENA has provided over $370 million to 65 renewable hydrogen projects to date.
The Department of Climate Change, Energy, the Environment and Water (DCCEEW) estimates that Australia’s hydrogen industry could unlock over $50 billion in private sector investment and create up to 16,000 jobs by 2030.
Further announcements regarding Hydrogen Headstart Round 1 outcomes are expected in due course, with applications for the second $2 billion funding round anticipated later this year.
