The Australian Renewable Energy Agency (ARENA) has allocated $814 million from its Hydrogen Headstart Program to the Murchison Green Hydrogen Project in Western Australia, marking the program’s first major investment.
Developed by Copenhagen Infrastructure Partners (CIP), the 1500 MW project aims to leverage Western Australia’s solar and wind resources to produce renewable hydrogen and ammonia at scale, contributing to global decarbonisation efforts.
ARENA CEO Darren Miller highlighted the need for government support to bridge the gap between renewable hydrogen production costs and market prices.
“At the time it was announced, Hydrogen Headstart was the largest government investment in Australia’s developing renewable hydrogen industry. ARENA’s support will help Australia’s first large-scale projects get to financial close and deliver on Australia’s promise as a provider of clean energy to decarbonise industry in Australia and globally,” Miller said.
“The Hydrogen Headstart Program commits funding to bridge the current commercial gap in the form of a production credit, meaning funding is only provided once projects are constructed and operational.”
“Enabling hydrogen projects through Hydrogen Headstart is essential to ensure our economic prosperity as the world transitions to cleaner forms of energy especially in hard to abate sectors such as ammonia, iron and alumina.”
The Hydrogen Headstart Program, introduced by the Australian Government as the largest investment in the nation’s renewable hydrogen sector, provides funding through production credits—releasing funds only once projects are constructed and operational.
CIP’s Murchison project, located near Kalbarri, will operate off-grid with a mix of 1.2 GW of solar PV, 1.7 GW of onshore wind, and a 600 MW battery storage system.
The facility will also house a desalination plant for water supply. Once operational, it is expected to produce 3,600 tonnes of renewable ammonia daily for export.
“Australia has immense potential for hydrogen production, and the Murchison project will play a key role in cementing our position as a global leader in clean energy,” Murchison Green Hydrogen CEO, Shohan Seneviratne said.
According to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), Australia’s hydrogen industry could generate over $50 billion in private investment and create up to 16,000 jobs by 2030.
Further details on the Hydrogen Headstart Program’s first-round outcomes are expected to be announced in the coming months.
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