Federal government fast-tracks $70b in clean energy and critical minerals projects
The Australian government has granted major project status to three resource projects with a development value of nearly $70 billion in a bid to improve the nation’s stalling clean energy and critical minerals development status.
With political parties and industry questioning its minerals and energy development strategy following recent major cutbacks at local nickel and lithium projects, the federal government will now help fast-track the NiWest Nickel Cobalt project, the Murchison Green Hydrogen project and the Australian Renewable Energy Hub.
The government said the three projects were awarded major project status as they are considered to be of national significance and will contribute to economic growth and employment.
Green energy development
Funded by Copenhagen Infrastructure Partners, a world leader in green energy investments, the Murchison Green Hydrogen project in Western Australia has an estimated development cost of $15 billion.
The proposed large-scale wind, solar, hydrogen and ammonia plant located in WA’s mid-west will generate 6 gigawatts of renewable energy each year and produce around 2 million tonnes of green ammonia.
It is estimated the project will create nearly 2,500 jobs over a five-year construction period and employ over 600 people when in operation.
Nickel-cobalt operation
Alliance West’s NiWest project is located in the WA nickel belt, adjacent to Glencore’s Murrin Murrin nickel-cobalt operation.
The project aims to produce 90,000t of nickel sulphate and 6,800t of cobalt sulphate.
Construction of the critical minerals project – which has an estimated cost of $1.26b – will take 10 years and employ more than 400 people during the project’s 50-year lifespan.
More than $30 million has been invested into drilling, metallurgical test work and development studies at NiWest, including the pre-feasibility study completed in 2018 and updated in 2022.
Pilbara power project
The BP-led $53.5b Australian Renewable Energy Hub is a phased development located in the Pilbara region of WA aimed at supplying renewable power to local customers in the world-leading mining region and producing green hydrogen for both the domestic Australian market and for export to major international users.
The project consists of two sites: a hydrogen processing facility capable of producing around 1.6Mt of hydrogen and 9Mt of green ammonia each year and a 6,500-square-kilometre solar array and wind farm expected to produce up to 26GW of combined solar and wind power each year.
Up to 5,000 workers are expected to be employed in an estimated 10-year construction period, with around 3,000 active when operational.
Operating under the federal Department of Industry, Science and Resources, the Major Projects Facilitation Agency is the government’s entry point for assisting project proponents with projects valued in excess of over $20m.
A key part of its remit is to help with regulatory approvals and provide information that may assist developers in fast-tracking their projects.