Western Australia will reap the economic opportunities and secure jobs of the renewable energy transformation, with the country's first Hydrogen Headstart project awarded up to $814 million in production incentives in the resources heavy state.
The 1,500 MW Murchison Green Hydrogen Project, developed by Copenhagen Infrastructure Partners, will use solar and wind powered hydrogen and convert it to green ammonia for export.
It will create 3,600 jobs in construction and 600 ongoing roles.
Stage one is expected to produce 900,000 tonnes of green ammonia each year - this is 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.
The project is located 20km north of Kalbarri - 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.
Delivered by the Australian Renewable Energy Agency (ARENA), the funding will be paid at production milestones over 10 years to help accelerate development.
Hydrogen Headstart is enabling large-scale renewable hydrogen projects like Murchison to get going by bridging the commercial gap between the cost of producing renewable hydrogen and the market price.
As a production-linked incentive, the program will support the industry's growth with an approach that pays on success.
This complements the new Hydrogen Production Tax Incentive, which recently passed in Parliament.
Together, this production support could provide $8 billion over 10 years to assist Australia's emerging renewable hydrogen industry.
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.
Quotes attributable to Minister for Climate Change and Energy Chris Bowen:
"Australia has one of the largest renewable hydrogen project pipelines in the world.
"This support is about unlocking that private capital to help realise our potential, not only to become a renewable energy superpower but create a Future Made in Australia with real jobs right now.
"But Peter Dutton is putting all of this at risk, refusing to support the emerging job creating green hydrogen industry while spearheading a $600 billion nuclear scheme that will only prolong expensive, unreliable and emissions intensive coal fired power."
