The Australian Renewable Energy Agency (ARENA) has given them conditional approval for A$432 million, that’s about $283.8 million, in funding. This funding will accelerate the establishment of the Hunter Valley Hydrogen Hub (HVHH) by leaps and bounds. It’s situated on Kooragang Island, New South Wales. This project is an important step toward decarbonising Orica’s operations and contributing to improving sustainable practices in the area.
Located at Newcastle Port, the HVHH is strategically placed with direct access to international distribution. This position provides benefits for local off-take deals via pipeline, helping to build both resource and ag sector connectivity. The hub is expected to generate an initial 26,600 tonnes of low-carbon ammonia annually. This effort will reduce the company’s daily reliance on natural gas by 7.5%.
Economic Impact and Job Creation
Additionally, the creation of the HVHH will generate 160 full-time construction jobs for its development phase. Once running, it will be able to maintain up to ten permanent jobs. This project supports Orica’s commitment to sustainability and contributes to the local economy through job creation and increased industrial activity.
Development approval was granted to Orica for HVHH in May 2024, one of the final significant milestones in the project’s approving chronology. The anticipated emissions benefit from the hub aligns with environmental goals, equating to the annual removal of approximately 26,500 cars from roads.
Government Support and Industry Significance
This funding from ARENA echoes an increasing momentum towards renewable energy actions across Australia. Darren Miller, CEO of ARENA, stressed the importance of renewable hydrogen – a key component of the global decarbonisation agenda. He explained that conventional ammonia production processes have in the past been extremely reliant on fossil fuels.
“Renewable hydrogen is an important decarbonisation lever for applications like ammonia production where hydrogen has traditionally been produced with fossil fuels.” – Darren Miller
Sanjeev Gandhi, Orica’s managing director and CEO, said the company was thankful. He welcomed support from ARENA, and from the federal and New South Wales governments. He pointed out that the HVHH would have a major role to play in the decarbonisation of Orica’s Kooragang Island manufacturing facility. What’s more, it will serve the entire Hunter Valley region.
“We are thankful for the support of ARENA and both the federal and the New South Wales governments, and we look forward to continuing to work in partnership with the ministers and the responsible agencies on the decarbonisation of Orica’s Kooragang Island manufacturing facility and the Hunter Valley region.” – Sanjeev Gandhi
Future Prospects
As the world moves ever faster toward sustainable energy solutions, HVHH places Orica at the forefront of renewable hydrogen production. The multimodal, collaborative project supports national goals for reducing carbon emissions and improving economic competitiveness through job creation and innovation.