WA Opens AU$60m Fund for Green Hydrogen and Industrial Decarbonization

Overview

Western Australia’s government is cranking up its clean-energy agenda with a fresh AU$60 million funding round through the Investment Attraction Fund. Starting in September 2025, this wave of investment zeros in on green hydrogen, green iron and steel, critical minerals processing and carbon capture, utilisation and storage (CCUS)—all designed to diversify the state economy and slash emissions.

Strategic Funding Boost

Premier Roger Cook has put AU$60 million on the table to speed up industrial decarbonization in sectors still hooked on fossil fuels. This round builds on support for lithium battery gigafactories and advanced manufacturing hubs—efforts that not only create skilled jobs but lay the groundwork for a low-carbon industrial powerhouse. Since it kicked off, the Investment Attraction Fund has pumped AU$216.4 million into more than two dozen projects, jump-starting renewable hydrogen, green steel, battery precursors and CCUS trials.

Focus Areas

Funding will flow to initiatives that:

• Scale up green hydrogen through electrolysis powered by solar and wind
• Produce green iron and steel by swapping coke for hydrogen, cutting CO₂ emissions by up to 90%
• Refine critical minerals like lithium, nickel and cobalt into battery-grade materials
• Roll out CCUS solutions to capture emissions from industrial sources—one trial snagged 45% of CO₂ from diesel generators

Flagship Projects

Take Xodus’s scheme in the Mid-West, for instance—a green hydrogen-plus-ammonia plant aimed at powering both mining operations and long-haul transport. They’re keeping capacity figures under wraps, but the goal is clear: build an integrated hydrogen hub that sets the bar.

On the steel front, the Mid-West Green Iron Project plans to deploy Thyssenkrupp Nucera’s polymer electrolyte membrane electrolysers alongside direct reduction kilns, producing iron pellets with only water vapor as a byproduct. If it all goes to plan, CO₂ emissions could plunge by around 90% compared to blast furnaces, unlocking premium low-carbon steel markets.

Meanwhile, state-owned Horizon Power has already proven the concept at its Kwinana plant, capturing about 45% of exhaust CO₂ from a diesel generator in a three-month pilot. Next up: scaling that tech to regional diesel plants fueling remote communities, potentially sequestering tens of thousands of tonnes of CO₂ each year.

Market and Regional Impact

This funding round slots neatly into WA’s broader plan to diversify beyond raw commodity exports. By keeping more of the supply chain on home soil, the state hopes to attract private investment, create skilled roles in regional centres and cement its reputation as a hydrogen powerhouse. Experts say smart grants lower off-take risk for developers and send a clear signal to global investors hunting reliable green-energy partners.

WA’s Resource Edge

Covering nearly one-third of the Australian continent, Western Australia is blessed with sun-drenched plains and coastal winds—perfect for powering large-scale electrolysers and CCUS hubs. The Mid-West corridor, in particular, has fast-tracked grid upgrades and port links to handle green ammonia exports and steel feedstocks, giving it a serious competitive edge.

Policy Backdrop

This AU$60 million boost is just the latest chapter in a long-running partnership between Canberra and Perth to supercharge industrial decarbonization. Since the early 2020s, a mix of grants, tax incentives and low-interest loans has underpinned a globally competitive hydrogen export market. The Investment Attraction Fund complements these tools, reinforcing WA’s “make it here” strategy.

Technical Snapshot: Green Hydrogen via Electrolysis

Here’s the lowdown on green hydrogen production: wind and solar juice up electrolysers that split water into hydrogen and oxygen. In WA’s high-renewable setting, capacity factors of 35–45% are realistic, driving down the levelised cost of hydrogen production. Firms like Thyssenkrupp Nucera will lean on polymer electrolyte membrane (PEM) tech—battle-tested in Europe—to keep these units humming.

Emissions and Economic Uplift

Early modelling shows that swapping coke for green hydrogen in steelmaking could cut ironworks CO₂ by up to 90%, while retrofitting regional generators with CCUS could lock away thousands of tonnes of carbon annually. Couple that with slick critical minerals processing, and you’re looking at hundreds of new jobs plus millions of dollars injected into local supply chains.

Key Takeaways

• AU$60 million via the Investment Attraction Fund fuels hydrogen, steel and CCUS projects.
• Initiatives by Xodus and Thyssenkrupp Nucera target up to 90% cuts in steel emissions.
• Horizon Power’s CCUS pilot captured roughly 45% of CO₂ from a diesel generator.
• WA aims to lock in private partnerships, boost local jobs and strengthen its export value chain.

Risks and Considerations

That said, scaling up isn’t exactly a stroll in the park. You’ve got to time your electrolysis roll-out with renewable power supply and nail down off-take contracts. As for CCUS, transport and storage logistics must be rock-solid. Any missteps or cost overruns could dampen private-sector enthusiasm—especially with global players circling. And let’s not forget, workforce reskilling is vital if communities are going to reap the benefits.

Proposal Insights

Thinking of throwing your hat in the ring? Make sure you lock in renewable power deals and off-take agreements before you apply. Teaming up with WA-based manufacturers and tapping into regional workforces will give you an edge. With the bar set high, tying your bid to the state’s decarbonization roadmap—and flagging green ammonia export potential—will really catch decision-makers’ eyes.

Outlook

This funding round puts WA squarely in the clean-energy big leagues. Keep an eye out for the grant guidelines dropping in late 2025, and investors can expect clearer paths to financing. If all goes well, this AU$60 million could ignite a wave of projects, strengthen WA’s green hydrogen export strategy, and help Australia edge closer to its net-zero goals.

As these Investment Attraction Fund rounds roll out, WA could become the blueprint for industrial decarbonization, showing how multi-million-dollar grants can spark local jobs and cement global leadership in green hydrogen and CCUS.