Melbourne, Australia: The Australian Hydrogen Council (AHC) has today welcomed the announcement by the Australian Government to award $814m 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 the production of approximately 900,000 tonnes of green ammonia per year.
Hydrogen Headstart is a program administered by the Australian Renewable Energy Agency (ARENA) that will provide 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 that has $2bn allocated to it.
Applications for the second $2bn funding round of Hydrogen Headstart is expected to commence later this year, following an industry consultation process led by ARENA.
The Federal Government is expected to make further announcements about Hydrogen Headstart first round recipients.
CEO of the Australian Hydrogen Council Dr Fiona Simon said:
“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.
“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.
“The Hydrogen Headstart program has $4bn 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.”
About Australian Hydrogen Council
The Australian Hydrogen Council is the peak representative body for the Australian hydrogen industry, with members from across the hydrogen value chain. We represent the emerging hydrogen industry and connect it with its stakeholders to collectively create a clean and resilient energy future that has hydrogen as a key part of the energy mix. Read more at www.h2council.com.au.
You can download the full PDF here.