Australia's Green Hydrogen Push: A Tale of Two Projects
Key Ideas
  • Federal backing for the Hunter Valley Hydrogen Hub marks progress towards green hydrogen production in Australia.
  • The collapse of the Central Queensland Hydrogen Project (CQ-H2) highlights the challenges faced by the renewable hydrogen industry.
  • The Australian government aims to drive down costs and build scale in green hydrogen production to support decarbonisation efforts.
  • Orica's transition to green hydrogen will enable the reduction of emissions from its ammonia facilities and open up opportunities for clean hydrogen and ammonia exports.
The Australian government has allocated $432 million in federal funding to support the Hunter Valley Hydrogen Hub, a major green hydrogen project that aims to switch from hydrogen made with gas to renewable energy. This move comes after the collapse of the $14 billion Central Queensland Hydrogen Project (CQ-H2), signaling the challenges faced by the renewable hydrogen industry. The government's Hydrogen Headstart program, delivered by the Australian Renewable Energy Agency (ARENA), is designed to boost green hydrogen production, lower costs, and position Australia as a global leader in the green hydrogen sector. Despite setbacks, Federal Energy Minister Chris Bowen remains optimistic about the future of green hydrogen in Australia. Orica, a key player in the industry, will benefit from the funding by setting up a 50MW electrolyser powered by renewable energy on Kooragang Island, capable of producing 4700 tonnes of green hydrogen annually. This transition will not only reduce emissions from ammonia facilities but also create job opportunities in low-carbon industries. The project is seen as a crucial step towards decarbonisation and a cleaner, more resilient future for the Hunter region. The support for green hydrogen projects reflects the government's commitment to driving environmental sustainability and meeting global emissions targets.
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