Federal Backing for Green Hydrogen Project in Hunter Valley Amid Industry Challenges
Key Ideas
- Orica's ammonia plant in Kooragang Island secures $432 million federal funding to transition from fossil fuel-based hydrogen to renewable energy.
- The Hydrogen Headstart program aims to boost green hydrogen production in Australia, supporting the country's decarbonisation efforts and climate goals.
- Despite setbacks like the cancellation of the $14 billion Central Queensland Hydrogen Project, the government remains committed to advancing the renewable hydrogen industry.
- The Hunter Valley project will feature a 50 MW electrolyser powered by renewables, producing 4700 tonnes of green hydrogen annually and creating regional job opportunities.
A major green hydrogen project in Hunter Valley, Australia, received significant federal backing through a $432 million funding allocation under the Hydrogen Headstart program. This funding will enable Orica's ammonia plant in Kooragang Island to shift from using hydrogen produced with fossil fuels to renewable energy sources. The initiative is part of Australia's efforts to become a global leader in green hydrogen production, particularly for powering heavy industry and long-haul trucks, as well as producing green metals like iron to support decarbonisation targets and combat climate change. Despite setbacks in the industry, such as the cancellation of the $14 billion Central Queensland Hydrogen Project, the government remains committed to supporting renewable hydrogen projects. The Hunter Valley project will feature a 50 MW electrolyser powered by renewables, capable of producing 4700 tonnes of green hydrogen annually, thereby reducing emissions from ammonia production and creating job opportunities in low-carbon industries. The Clean Energy Council praised the government's dedication to driving down the cost of renewable fuels to facilitate Australia's decarbonisation plans.