The Australian Government has awarded $814 million in Hydrogen Headstart funding to the Murchison Green Hydrogen project in Western Australia.
Backed by Copenhagen Infrastructure Partners, the project near Kalbarri will feature an onshore wind and solar farm, desalination plant and 1.5GW green hydrogen production facility. The green hydrogen will support production of 3,600 tonnes per day of green ammonia production capacity.
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The Hydrogen Headstart program is administered by the Australian Renewable Energy Agency (ARENA) and provides revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts.
Murchison Green Hydrogen is the first recipient awarded from the first funding round of Hydrogen Headstart.
Australian Hydrogen Council CEO Dr Fiona Simon welcomed the announcement.
“Hydrogen Headstart is a critical funding program for large scale hydrogen projects, and we are pleased to see the Murchison Green Hydrogen project announced as the first recipient today,” she said.
“Together with the recently passed legislation to establish a hydrogen production tax incentive, this project can now proceed to its next phase with private investors, partners, community and the government.
“Hydrogen Headstart is not a cash handout for the hydrogen industry, but an incentive applied once these large-scale projects start producing green hydrogen or derivatives to bridge the commercial gap.
“It is a key lever to support a nascent industry that will unlock significant benefits particularly in our regions—from new jobs, skills and infrastructure, to decarbonisation of industrial sectors and the creation of new export opportunities.
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“The Hydrogen Headstart program has $4 billion funding committed split over two application rounds. It is critical that we accelerate the second funding round to provide certainty for other large scale renewable hydrogen projects.
“There is no ‘do nothing option’ when it comes to hydrogen. We need it as a large-scale option for decarbonising energy that requires molecules. And we need it as a chemical solution to produce commodities like green ammonia and green iron. And we also need to remain a trusted energy partner across Asia and the export of molecules is critical to Australia’s ongoing prosperity.”
