Australia awards $516 million for green hydrogen project

Australia

MELBOURNE, March 20, 2025 – Danish investment firm Copenhagen Infrastructure Partners (CIP) has secured USD 516 million from the Australian Government’s Hydrogen Headstart program for its Murchison Green Hydrogen project in Western Australia, the firm announced on Thursday.

Located 20 kilometres north of Kalbarri, Murchison Green Hydrogen will produce approximately 1.8 million tonnes per year of green ammonia, primarily for export to Asian markets. The facility will have a desalination plant attached and will be powered by 6 GW of onshore wind and solar generation.

Construction of the facility is expected to begin in 2027 and last five years. Total project costs are estimated at USD 9.5 billion.

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

CIP is an investment firm specialising in greenfield renewable energy developments, particularly offshore wind. It has raised approximately EUR 32 billion and has projects under way in more than 30 countries.

The Murchinson Green Hydrogen project is being funded through CPI’s EUR 3-billion CI Energy Transition Fund I, which also includes projects in Chile, Denmark, Norway, Portugal and Spain.