Australia Invests in Orica-led Green Hydrogen Project Amid Industry Struggles
Key Ideas
  • Australia announces a A$432 million investment in the Hunter Valley Hydrogen Hub led by Orica to support decarbonization efforts in ammonia and explosives manufacturing operations.
  • The project aims to supply green fuel and green ammonia for export, contributing to Australia's net-zero goals and cutting emissions significantly.
  • Despite recent setbacks in the green hydrogen industry in Australia, Orica's project receives government support seen as essential to bridging the commercial gap and attracting potential project partners.
  • Orica plans to use a 50 megawatt electrolyser powered by renewable energy to produce up to 12 tonnes of green hydrogen per day in the first phase of the hub.
Australia has announced a significant investment of A$432 million in a green hydrogen project led by Orica aimed at decarbonizing ammonia and explosives manufacturing operations in the Hunter Valley. The project, known as the Hunter Valley Hydrogen Hub, intends to eventually supply green fuel and green ammonia for export, aligning with Australia's net-zero goals. Climate Change and Energy Minister Chris Bowen highlighted the importance of green hydrogen in securing Australia's energy future and reducing emissions from Orica's facilities. The funding comes at a crucial time for Australia's green hydrogen industry, which has faced challenges such as delays and project cancellations. Notably, a major A$12.5 billion project in Queensland recently collapsed, raising doubts about the sector's viability. Orica's project had also experienced setbacks when its former partner, Origin Energy, exited due to cost concerns and market challenges. However, with government support, Orica aims to overcome these obstacles and advance towards a final investment decision. Orica's CEO, Sanjeev Gandhi, expressed optimism about the project, emphasizing the goal of supporting decarbonization efforts for domestic and international customers through low-carbon products. The Hunter Valley Hydrogen Hub plans to utilize a 50 megawatt electrolyser powered by renewable energy to produce up to 12 tonnes of green hydrogen per day in its initial phase. The project's success is seen as pivotal for Australia's green energy transition and demonstrates the government's commitment to fostering sustainable practices in the energy sector.
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