Hunter Energy Hub

March 28th, 2024

Hunter Energy Hub

The project proponents are undertaking studies to explore the development of a renewables-based hydrogen and ammonia production facility in the Hunter Valley region of New South Wales.

Main proponents:

AGL Energy, Fortescue Future Industries

Main end-use classification:

Domestic and export markets under evaluation


Under development

Estimated cost:


Other involvement:

APA Group, INPEX Corporation, Jemena, Osaka Gas Australia

Production details:

Large-scale hydrogen production facility between 150 megawatt (MW) to 2 Gigawatt (GW) under evaluation


New South Wales, Australia

Announced funding:


Project description

In December 2021, it was announced that AGL Energy and Fortescue Future Industries had executed a Memorandum of Understanding (MOU) to explore the development of a renewables-based hydrogen production facility in the Hunter Valley region of New South Wales (at the site of the of the AGL-operated Liddell and Bayswater coal-fired power stations; the Liddel station closed in 2023 and Baywater closure is scheduled between 2030-2033).

The proposed facility forms part of a AGL ‘Hunter Energy Hub’ development, that would combine grid-scale batteries, solar thermal storage, wind and pumped hydro.

In August 2022, an expanded feasibility study was announced with additional partners – APA Group, INPEX Corporation, Jemena and Osaka Gas Australia, with their respective roles in the study included in the announcement release.

The feasibility study mapped key operational and commercial plans for the project as well as developing a production timeline. The study focussed on assessing the implementation of a large-scale renewables-based production facility ranging from a minimum 150MW and up to 2GW of hydrogen and its derivatives such as ammonia for export and domestic use.

Discussions are ongoing between the main proponents (AGL and Fortescue) exploring funding and feasibility development options for the project.

Note: the October 2022-23 federal budget released on 25 October 2022 included a broad support measure of AUD$100 million to support the Port of Newcastle and the Hunter region to become hydrogen-ready.


Updated: March 2024