Australia Invests in Green Hydrogen Project Amid Industry Setbacks
Key Ideas
- Australia announces A$432 million investment in Orica-led Hunter Valley Hydrogen Hub to decarbonise operations and promote green ammonia export.
- Climate Change and Energy Minister cites green hydrogen as crucial for Australia's net-zero goals and reducing emissions across various sectors.
- Orica's project receives essential government support to overcome commercial challenges and aims for a final investment decision in the near future.
- The initiative plans to produce 12 tonnes of green hydrogen per day using renewable energy, contributing to domestic and international decarbonisation efforts.
Australia has pledged A$432 million towards the Hunter Valley Hydrogen Hub, a green hydrogen project spearheaded by Orica, in a move to support the emerging industry amidst setbacks faced by other hydrogen projects in the country. The initiative is focused on decarbonising Orica's ammonia and explosives manufacturing operations and eventually exporting green fuel and ammonia. Climate Change and Energy Minister Chris Bowen emphasized the significance of green hydrogen in achieving Australia's net-zero goals and reducing emissions in key sectors like mining, agriculture, and manufacturing. The funding aims to secure Australia's energy future and boost the struggling green hydrogen industry. Orica highlighted the government's support as crucial in bridging the project's commercial gap, following setbacks including the exit of project partners. CEO Sanjeev Gandhi expressed optimism about contributing to decarbonisation goals both domestically and internationally. The project plans to utilize a 50-megawatt electrolyser powered by renewable energy to produce up to 12 tonnes of green hydrogen per day. Despite recent setbacks in the industry, the investment in the Hunter Valley Hydrogen Hub signals a positive step towards advancing sustainable energy practices in Australia.