WA’s $814M Hydrogen HeadStart: Largest Green Hydrogen Project to Boost Renewable Energy

Green Hydrogen

Western Australia is set to benefit from a major green hydrogen energy development through the country’s first Hydrogen HeadStart initiative. The Murchison Green Hydrogen Project, developed by Copenhagen Infrastructure Partners, has secured up to $814 million in production incentives. Located 20 kilometres north of Kalbarri, this 1,500 MW facility will utilize solar and wind energy to produce green hydrogen, which will be converted into green ammonia for export. The project is expected to create 3,600 construction jobs and 600 permanent roles upon completion.

• Hydrogen demand has tripled globally since 1975 and continues to rise, primarily driven by industrial use. However, 75% of the 70 million tonnes of hydrogen produced each year still comes from natural gas, contributing to 6% of global natural gas consumption. Coal, especially in China, is also a significant source. The transition to green hydrogen—using renewable sources is crucial for lowering emissions, reducing fossil fuel dependency, and supporting global decarbonization targets across energy-intensive sectors.
• The production cost of hydrogen from natural gas is influenced by a range of technical and economic factors, with gas prices and capital expenditures being the two most important.
• Fuel costs are the largest cost component, accounting for between 45% and 75% of production costs. Low gas prices in the Middle East, Russia, and North America give rise to some of the lowest hydrogen production costs. Gas importers like Japan, Korea, China, and India must contend with higher gas import prices, and that makes for higher hydrogen production costs.
• Artificial Intelligence (AI) is accelerating the shift to green hydrogen by optimizing production processes. AI-driven simulations enable accurate sizing and placement of renewable assets, while predictive control systems fine-tune electrolyser operations.
• AI-enhanced digital twins offer insights beyond sensor data, simulating scenarios and forecasting outputs throughout the plant lifecycle. Cloud-based Energy Management Systems (EMS) integrate renewable forecasts, electricity markets, and hydrogen storage to minimize costs and maximize output. This level of real-time coordination ensures efficient use of resources and supports the growth of scalable, sustainable hydrogen infrastructure globally.