Orica will proceed with its Hunter Valley Hydrogen Hub, which is set to receive $432 million in funding under a headstart program.
And, the venture looks likely to deploy 50MW of electrolyser capacity, powered by renewable energy, to produce about 4,700 tonnes of hydrogen each year.
It’ll also partially replace natural gas feedstock, used at Orica’s Kooragang Island facility, to create lower-carbon ammonia and ammonia nitrate, reducing emissions from one of the nation’s most intensive industrial processes.
Australian Renewable Energy Agency (ARENA) CEO Darren Miller said Orica’s decision marked a critical phase for large-scale hydrogen projects.
“This milestone is an important step in demonstrating industry commitment to renewable hydrogen, particularly as a pathway to decarbonise heavy industry and reduce emissions where alternatives are limited,” he explained.
“Hydrogen is a complex, capital-intensive sector.
“But, it represents a significant economic and decarbonisation opportunity for Australia.
“Orica’s declaration says renewable hydrogen production can be deployed at scale in Australia, shifting the conversation from concept to deployment, particularly for hard-to-abate industries where it can make the biggest impact.”
Business Hunter was among the first organisations to welcome the announcement.
“As a proud manufacturing region, we’re focused on the challenge of finding ways to reduce carbon output without losing our industrial strength and capability,” CEO Bob Hawes said.
“Orica is leading the way in this regard, with the support of the state and federal governments as well as ARENA, investing in solutions that will support its operations now and into the future.”
Work on the Hunter Valley Hydrogen Hub is expected to begin this year, with the first production target in early 2029.
Mr Hawes said the call to proceed would support existing jobs and manufacturing at the plant, while also cultivating new skills and expertise in renewable hydrogen production.
“These are exactly the skills we want to bring to this region to send a message to investors globally that the Hunter leads the nation in the advancement of renewable energy technology and capability,” he added.
“We look forward to seeing progress on the hydrogen hub and the Hunter continuing to lead Australia’s transition to a cleaner, more innovative industrial future.”
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