Murchison Green Hydrogen Project receives ARENA funding

The Australian Renewable Energy Agency (ARENA) has announced the first recipient from its Hydrogen Headstart Program, with $814 million in funding allocated to the 1500 MW Murchison Green Hydrogen Project in Western Australia being developed by Copenhagen Infrastructure Partners (CIP).

“CIP’s Murchison project is an example of how we can leverage Australia’s high-quality solar and wind resources to produce low-cost renewable hydrogen and ammonia at scale, increasing export opportunities and embedding Australia as a key enabler of global decarbonisation,” said Darren Miller, ARENA CEO.

Miller said Australia has immense potential when it comes to hydrogen projects; however, many projects face challenges due to the current gap between the market price for renewable hydrogen and production costs.

“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,” he 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.”

Murchison must now satisfy a number of development conditions and achieve commercial operations before the funding is released. Funding under the program is paid based on production volumes over a 10-year operating period.

To date, ARENA has provided over $370 million to 65 renewable hydrogen projects from early-stage research to deployment projects.

According to analysis by the Department of Climate Change, Energy, the Environment and Water (DCCEEW), Australia’s hydrogen industry could unlock over $50 billion in additional private sector investment and create up to 16,000 new jobs by 2030.

The Murchison Green Hydrogen project involves the large-scale production of renewable hydrogen and ammonia in the mid-west of Western Australia. The project will be located approximately 15 km north of the coastal town of Kalbarri and will include up to 1.5 GW of electrolysis and 3600 tonnes per day of Haber-Bosch ammonia production capacity. The facility will operate completely off-grid, powered by approximately 1.2 GW of solar photovoltaic and approximately 1.7 GW of onshore wind new-build generation with a 600 MW /1200 MWh battery energy storage system and water sustainably sourced through a new desalination facility. Renewable ammonia is expected to be exported to support global decarbonisation.

“CIP is honoured to receive Hydrogen Headstart funding, which reinforces our shared vision with the Australian Government to establish a leading green hydrogen industry in Australia,” said Murchison Green Hydrogen CEO Shohan Seneviratne. “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 Murchison and the Australian hydrogen industry a reality.”

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