Copenhagen Infrastructure Partners (CIP), through its CI Energy Transition Fund I (ETF I), has secured AUD 814 million in funding from the Australian Government’s Hydrogen Headstart program to advance the Murchison Green Hydrogen project in Western Australia.
This initiative is among the world’s largest and most advanced commercial-scale green hydrogen and ammonia projects, reinforcing Australia’s ambition to become a global leader in renewable energy.
Murchison Green Hydrogen project - Overview
Located 20 km north of Kalbarri in Western Australia’s Mid West region, the Murchison Green Hydrogen project aims to produce approximately 1.8 million tonnes of green ammonia per year, primarily for export to Asian markets.
The facility will be powered by a 6GW onshore wind and solar farm, leveraging the region’s optimal wind and solar conditions while maintaining a manageable cyclone risk.
The project is led by CIP, which acquired the development from Hydrogen Renewables Australia (HRA) in 2021. It is understood that once operational, the facility will integrate:
- a desalination plant,
- a green hydrogen production facility, and
- a conversion system to produce green ammonia for export.
Green Hydrogen and Decabornization
Green hydrogen is an emerging renewable energy source with the potential to reduce reliance on fossil fuels, lower greenhouse gas emissions, and support global decarbonization efforts. The conversion of hydrogen into green ammonia enhances its transportability, making it a viable solution for large-scale energy exports.
Project Status and Development
The Murchison Green Hydrogen project is subject to rigorous environmental, heritage, and social impact assessments. As part of the concept development phase, comprehensive marine, environmental, and heritage surveys will be conducted to determine infrastructure requirements.
The Environmental Protection Authority (EPA) is expected to assess the project following the submission of an Environmental Review Document (ERD) in 2025, which will be open for public consultation.
Once regulatory approvals are secured, the project will proceed to Front End Engineering Design (FEED), Final Investment Decision (FID), with Notice to Proceed (NTP) for an EPC contractor expected in 2027. According the project leadership, these are the next big milestones and timelines for the project:
2025 – Environmental Review Document submission and public consultation
2027 – Expected start of construction
5-year construction period – Completion targeted in the early 2030s
- 2031 – Plant Production
The Hydrogen Headstart program and the Funding for Murchison Green Hydrogen project
The Australian Renewable Energy Agency (ARENA) has awarded $814 million in funding to Murchison Green Hydrogen Project under the first round of the Hydrogen Headstart Program. This initiative aims to bridge the commercial gap between the production cost of renewable hydrogen and its market price, ensuring that large-scale projects can achieve final investment decision and financial close and move into construction.
The Hydrogen Headstart Program provides production credits, meaning funding is only released once projects are fully constructed and operational. The Murchison project must now meet key development milestones before receiving funding, with payments distributed over a 10-year operating period based on production volumes.
Karsten Uhd Plauborg, Partner at CIP, emphasized the significance of this funding:
“CIP is honored to receive this funding, which reinforces our shared vision with the Australian Government to establish a leading green hydrogen industry in Australia. We see significant potential in green hydrogen, and projects such as Murchison Green Hydrogen are key for countries and industries to take the next step within decarbonization and achieving energy independence. We look forward to continuing to work with government, the Nanda People, and the community to progress the project and deliver value for the region.”
Related Project and News – Green Hydrogen Projects
- Tecnimont awarded FEED contract for a green hydrogen / ammonia plant in Portugal
- Wood will be the Owner’s Engineer for Catalina Green Hydrogen Project in Spain
- Engie and Posco sign an agreement for a green hydrogen plant feasibility study in Australia
- Verdagy awards FEED Contract for Black & Veatch for Clean Hydrogen Plant in Texas
