Australia's Green Hydrogen Push: Federal Backing for Hunter Valley Project
Key Ideas
  • Orica's ammonia plant at Kooragang Island receives $432 million in federal funding to transition from gas-produced hydrogen to renewable energy, supporting regional jobs.
  • Australia aims to lead in green hydrogen for heavy industry, transportation, and metal production to meet decarbonisation goals and combat climate change.
  • Despite the recent setback of Gladstone's scrapped $14 billion hydrogen project, the federal government remains committed to driving the growth of renewable hydrogen.
  • The 50 MW electrolyser on Kooragang Island will produce 4700 tonnes of green hydrogen annually, enabling Orica to reduce emissions and potentially export clean hydrogen and ammonia.
Orica's ammonia plant at Kooragang Island in Australia has received significant financial backing from the federal government to transition to green hydrogen production. The project is part of the country's push to become a global leader in renewable energy, specifically green hydrogen, to power heavy industry, long-haul trucks, and produce green metals like iron. The funding, allocated under the Hydrogen Headstart program, aims to support the shift from fossil fuel-based hydrogen to cleaner, renewable sources. Despite the recent setback of the scrapped $14 billion Central Queensland Hydrogen Project, the government remains committed to growing the renewable hydrogen sector. The new 50 MW electrolyser on Kooragang Island will have the capacity to produce 4700 tonnes of green hydrogen annually, contributing to job creation in low-carbon industries. This move not only allows Orica to reduce emissions from its ammonia facilities but also opens up opportunities for exporting clean hydrogen and ammonia. The Clean Energy Council has praised the government's support for such intricate renewable hydrogen projects, emphasizing the importance of driving down costs to support Australia's decarbonisation efforts.
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