Australian Federal Backing for Green Hydrogen Project in Hunter Valley
Key Ideas
  • Australian government provides $432 million funding for a green hydrogen project in the Hunter Valley, transitioning from fossil fuel-based hydrogen to renewable energy.
  • The project aims to produce 4700 tonnes of green hydrogen annually to support regional jobs and reduce emissions in the ammonia production sector.
  • Federal support is part of the Hydrogen Headstart program to boost green hydrogen production, drive down costs, and position Australia as a global leader in the sector.
  • Despite the recent setback of a scrapped $14 billion hydrogen project in Gladstone, the government is committed to overcoming challenges and fostering renewable hydrogen projects.
A significant green hydrogen project in the Hunter Valley has received federal backing to transition from using gas to renewable energy for hydrogen production. The $432 million funding from the Australian government, allocated under the Hydrogen Headstart program, aims to support the facility in producing 4700 tonnes of green hydrogen annually. This shift will enable the Hunter Valley project, operated by Orica, to create regional jobs in low-carbon industries and reduce emissions in ammonia production. Furthermore, the project will introduce export opportunities for clean hydrogen and ammonia. Despite the setback of the scrapped $14 billion Central Queensland Hydrogen Project, the government remains dedicated to supporting and scaling up the renewable hydrogen sector to drive down costs and meet decarbonisation goals. Federal Energy Minister Chris Bowen emphasized the importance of green hydrogen in powering heavy industry and long-haul trucks, as well as producing green metals to combat climate change. The Clean Energy Council welcomed the government's commitment to advancing renewable hydrogen projects and emphasized the need to reduce the cost of the fuel for successful decarbonisation efforts.
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