Orica's Hunter Valley Hydrogen Hub: Pioneering Decarbonization in Newcastle
Key Ideas
- Orica secured $432 million in funding from the ARENA Hydrogen Headstart program to establish a hydrogen facility at Kooragang Island in Newcastle.
- The Hunter Valley Hydrogen Hub aims to produce renewable hydrogen for industrial use, particularly in ammonia and ammonium nitrate production, reducing natural gas demand by 7.5%.
- The project's first phase plans to generate 12 tonnes of renewable hydrogen daily, creating 160 jobs during construction and up to 10 full-time positions, while supporting decarbonization and domestic manufacturing.
- Orica's initiative signifies a significant step towards decarbonizing heavy industry and fostering Australia's position as a global leader in clean energy exports through renewable hydrogen projects.
Orica, an explosives manufacturer, has secured $432 million in funding from the ARENA Hydrogen Headstart program to establish a hydrogen facility at its Kooragang Island operations in Newcastle, Australia. The Hunter Valley Hydrogen Hub (HVHH) project aims to produce commercial-scale renewable hydrogen to serve the industrial and port precinct in Newcastle. This renewable hydrogen will replace natural gas as a feedstock in producing ammonia and ammonium nitrate, contributing to decarbonization efforts. The first phase of the project targets a daily production of 12 tonnes of renewable hydrogen, aiming to reduce Orica's natural gas demand for chemical manufacturing by 7.5%. This phase is expected to generate 26,600 tonnes of ammonia annually and create job opportunities. The hydrogen production will utilize electrolysis, with a 50MW electrolyzer powered by recycled water and renewable energy. The project received development approvals in May and aligns with ARENA's goal of accelerating Australia's renewable hydrogen industry. Orica's CEO highlighted the project's potential to support Australia's hydrogen industry growth and create new jobs. The initiative emphasizes the importance of a supportive regulatory environment and collaboration to address manufacturing industry challenges and achieve long-term sustainability goals.