Orica Secures Funding for Hunter Valley Hydrogen Hub in New South Wales
Key Ideas
- Orica receives A$432m in funding from ARENA for its Hunter Valley hydrogen hub at Kooragang Island, New South Wales.
- The project aims to produce renewable hydrogen to replace natural gas in manufacturing low-carbon ammonia and ammonium nitrate, benefiting various industries.
- Pending FID, the hub is expected to generate 4,700 tonnes of renewable hydrogen annually, leading to a significant reduction in emissions equivalent to removing 26,500 cars from the roads each year.
- HVHH's strategic location at Newcastle Port enhances its commercial viability by enabling international distribution and local off-take arrangements, fostering economic growth in the region.
Orica, a mining and infrastructure solutions provider, has secured conditional approval for A$432m in funding from the Australian Renewable Energy Agency (ARENA) to support its Hunter Valley hydrogen hub at Kooragang Island in New South Wales. This financial support is part of ARENA's Hydrogen Headstart programme aimed at advancing Australia's renewable hydrogen industry. The project, once operational, will utilize a 50MW electrolyser powered by renewable electricity to produce green hydrogen, gradually replacing natural gas in manufacturing low-carbon ammonia and ammonium nitrate. This shift is expected to reduce Orica's natural gas requirement significantly. Additionally, the project is set to create job opportunities, with 160 construction roles and up to ten permanent jobs. The Hunter Valley hydrogen hub has received support from both the New South Wales and federal governments. Orica's CEO expressed gratitude for the collaboration and highlighted the potential of renewable hydrogen to decarbonize manufacturing operations and foster economic growth in the region. The strategic location of the hub at Newcastle Port, complemented by established market presence, enables international distribution and strengthens its commercial viability. ARENA CEO emphasized the importance of renewable hydrogen in decarbonizing applications like ammonia production, traditionally reliant on fossil fuels, showcasing the environmental benefits of such initiatives.
Topics
Production
Renewable Energy
Infrastructure
Job Creation
Decarbonisation
Government Support
Economic Growth
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