The Government of the Australian State of Western Australia has allocated land to energy consultancy Xodus and its partners under the Warradarge Energy banner to progress the development of a commercial scale green hydrogen and ammonia project in the Oakajee Strategic Industrial Area (SIA). Announced in 2022, the MercurHy project will be developed in several phases (150 MW in Phase 1, 500MW in Phase 2, and 1,000 MW by the end of Phase 3), initially focusing on domestic hydrogen supply to decarbonise the mining and heavy transport sectors. Partners have already started to negotiate power supply agreements with an existing wind park and offtake partners onboard. In a second phase, the project could produce ammonia for export markets.
In 2024, the Australian Government announced that it would pay eligible producers a hydrogen production tax incentive (HPTI) of AUD2/kg (US$1.3/kg) under the Future Made in Australia legislation. The incentive is available to renewable hydrogen producers for up to 10 years, between 1 July 2027 and 30 June 2040.