Danish renewable energy investment firm Copenhagen Infrastructure Partners (CIP) has been successful in the federal government’s first Hydrogen Headstart round for its Murchison Green Hydrogen Project (MGHP)
Awarded up to $814 million (USD 515 million) in production incentives the 1,500 MW MGHP will use 6 GW of solar and wind generation, with the solar covering 7,000 hectares, to power hydrogen production and convert it to green ammonia for export.
Federal Minister for Climate Change and Energy Chris Bowen said the funding is about unlocking that private capital to help realise Australia’s hydrogen potential.
“Not only to become a renewable energy superpower but create a Future Made in Australia with real jobs right now,” Bowen said.
Stage one is expected to produce 900,000 tonnes of green ammonia each year, equivalent to almost half of Australia’s current ammonia production from fossil fuels.
Green ammonia can be used to make fertiliser and other chemicals, as an energy carrier and to power ships as a green fuel.
Image: Murchison Green Hydrogen Project
CIP Partner Karsten Uhd Plauborg said the company sees significant potential in green hydrogen and projects such as Murchison Green Hydrogen are key for countries and industries to take the next step within decarbonisation and achieving energy independence.
“We look forward to continuing to work with government, the Nanda People and community to progress the project and deliver value for the region,” Plauborg said.
Murchison Green Hydrogen Chief Executive Officer Shohan Seneviratne said the project is 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 this project and the Australian hydrogen industry a reality.”
The project is located 20 kilometres north of Kalbarri and 580 kilometres north of Perth and has been identified as one of the best locations in the world for green hydrogen production, due to wind and solar resources, limited cyclone risk and proximity to key offtake markets.
Australian Hydrogen Council Chief Executive Officer Dr Fiona Simon said together with recently passed legislation to establish a hydrogen production tax incentive, the Murchison 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,” Simon said.
“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.”
Simon added 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.”
Delivered by the Australian Renewable Energy Agency (ARENA), the funding will be paid at production milestones over 10 years to help accelerate development.
Through the First Nations Renewable Hydrogen Engagement Fund, the Government is also working with First Nations representatives to help empower communities to engage with economic opportunities from renewable hydrogen on their Country.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.