Orica's Hunter Valley Hydrogen Hub Receives Major Funding Boost for Renewable Hydrogen Production
Key Ideas
  • Orica secures AUS$432 million in ARENA Hydrogen Headstart funding to support the operation of the Hunter Valley Hydrogen Hub, aiming to accelerate Australia's hydrogen industry.
  • The proposed facility will produce renewable hydrogen via electrolysis, gradually replacing natural gas feedstock in the production of low-carbon ammonia and ammonium nitrate, benefiting various industries.
  • The first phase of the HVHH is expected to produce 12 tpd of renewable hydrogen, reducing Orica’s daily natural gas demand for chemical feedstock and equivalent to removing 26,500 cars off the road annually.
  • The project will create approximately 160 construction jobs and up to 10 ongoing jobs, contributing to industrial decarbonisation, economic growth, and social benefits in the Hunter region.
Orica, a major Australian manufacturer, has been conditionally awarded AUS$432 million in funding under the Australian Renewable Energy Agency's Hydrogen Headstart program to support the Hunter Valley Hydrogen Hub (HVHH). The project aims to accelerate the development of Australia's hydrogen industry and connect to global supply chains. The HVHH, to be located in Newcastle, will produce renewable hydrogen through electrolysis using recycled water and renewable electricity. This hydrogen will gradually replace natural gas feedstock in the production of low-carbon ammonia and ammonium nitrate, essential for industries like resources, agriculture, health, and food. The initiative is expected to reduce natural gas demand, equivalent to removing thousands of cars off the road annually. Orica views the HVHH as strategically located with established end markets, offering environmental and economic benefits to the Hunter region. The project will create jobs and contribute to industrial decarbonisation. Orica's CEO highlighted the importance of partnerships and regulatory support in achieving sustainable manufacturing practices. The ARENA CEO emphasized the role of renewable hydrogen in decarbonising heavy industry and unlocking new export opportunities. Orica plans to continue assessing project partnerships to further develop renewable energy assets.
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