Copenhagen Infrastructure Partners (CIP) has secured up to AUD 814 million ($512m) from the Australian government for its 1.5-gigawatt (GW) green hydrogen project in Western Australia.

The Murchison green hydrogen project is the first winner of Canberra’s AUD 2 billion Hydrogen Headstart Program, which offers funding support for large-scale green hydrogen projects. The announcement was long-awaited, with the Australian Renewable Energy Agency (ARENA) shortlisting six applicants for the first round in December 2023. 

CIP says it will now get up to AUD 814m for over 10 years for the project, paid based on production volumes. Located 20 kilometres north of Kalbarri, Murchison is expected to produce around 1.8 million tonnes/year of green ammonia, primarily for export to Asian markets. It will be powered by 6 GW of onshore wind and solar, Kallanish notes.

“CIP is honoured to receive this funding, which reinforces our shared vision with the Australian government to establish a leading green hydrogen industry in Australia,” comments Karsten Uhd Plauborg, partner at CIP.

“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,” adds ARENA ceo, Darren Miller.

Murchison must achieve commercial operations before the funding is released. A final investment decision for Phase 1 is expected in late 2026, with production anticipated in 2029.