Located approximately 20 km north of Kalbarri in Western Australia’s Mid-West region, the Murchison project will operate entirely off-grid. It will integrate 6 GW of new solar and onshore wind generation, 1.5 GW of electrolysis capacity, a 600 MW / 1,200 MWh battery storage system, and a desalination facility to sustainably source water. Once operational, it is expected to produce approximately 1.8 million tonnes of renewable ammonia annually, primarily for export to Asian markets.
ARENA CEO Darren Miller emphasized the importance of bridging the gap between high production costs and market prices for renewable hydrogen. “Hydrogen Headstart funding will help Australia’s first large-scale projects reach financial close and deliver on our promise as a clean energy provider for global industry decarbonization,” Miller stated. The program’s funding model is structured as a production credit, with payments tied to verified hydrogen output over a 10-year period.
The Murchison Green Hydrogen Project is backed by CIP’s Energy Transition Fund I (ETF I), the world’s largest dedicated renewable hydrogen fund, with approximately $3.25 billion (AUD 5 billion) allocated to decarbonize hard-to-abate sectors including steel, chemicals, and transportation. CIP, also a major investor in Australia’s Star of the South offshore wind project, has a 30 GW development pipeline in the country.
Shohan Seneviratne, CEO of Murchison Green Hydrogen, emphasized the project’s regional and national benefits.
“We are committed to creating local jobs, supporting skills development, and sharing project benefits with First Nations communities. This funding reinforces our shared vision with the Australian Government to establish a leading green hydrogen industry in Australia.”
According to the Department of Climate Change, Energy, the Environment and Water (DCCEEW), Australia’s hydrogen sector could unlock more than $32.5 billion (AUD 50 billion) in private investment and generate up to 16,000 new jobs by 2030. ARENA has already invested over $240.5 million USD (AUD 370 million) in 65 renewable hydrogen projects, ranging from early-stage research to large-scale deployment, cementing Australia’s position in the global clean energy transition.
