Copenhagen Infrastructure Partners (CIP) through its CI Energy Transition Fund I, has secured AU$814 million (US$515 million) in funding for its Murchison Green Hydrogen project in Western Australia.

The Murchison Green Hydrogen project is located in the Mid West region, approximately 20km north of the coastal town of Kalbarri.

The project will include up to 1.5GW of electrolysis and 3,600 tonnes per day of Haber-Bosch ammonia production capacity. The facility will operate completely off-grid, powered by approximately 1.2GW of solar photovoltaic and approximately 1.7GW of onshore wind new build generation with a 600MW/1,200MWh battery energy storage system

Water for the project will be sustainably sourced through a new desalination facility.

The facility, according to project developers CIP, is set to produce approximately 1.8 million tonnes of green ammonia annually, primarily for export to Asian markets.

Construction is expected to begin in 2027 and will take approximately five years.

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The funding was secured through the Australian Government’s Hydrogen Headstart programme, a AU$4 billion initiative aimed at providing revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts. The investment will help develop Australia’s hydrogen industry and connect the country to new global hydrogen supply chains.

Murchison must now satisfy a number of development conditions and achieve commercial operations before the funding is released. According to Australian Renewable Energy Agency, ARENA, funding under the programme will be paid based on production volumes over a 10-year operating period.

“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,” said Karsten Uhd Plauborg, partner at CIP. “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 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.”

Shohan Seneviratne, CEO of Murchison Green Hydrogen, added: “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.”

CIP has an Australian development pipeline exceeding 30GW.