Hunter Valley Hydrogen Hub
Hunter Valley Hydrogen Hub
The project proponent is progressing a large-scale renewables-based hydrogen project located in the Newcastle industrial and port precinct.
| Main proponents:
Orica |
Main end-use classification:
Industrial process – ammonia production |
Status:
Under development – FEED complete, ready to commence detailed design subject to FID |
Estimated cost:
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| Other involvement:
|
Production details:
Approximately 4,700 tonnes of renewables-based hydrogen production per annum, based on a 50-megawatt (MW) electrolyser |
Location:
New South Wales, Australia |
Announced funding:
AUD$70 million – Australian Government Regional Hydrogen Hubs Program – Hub Implementation funding stream AUD$45 million – New South Wales Hydrogen Hubs Initiative AUD$432 million in funding allocated under the Australian Government’s Hydrogen Headstart Program (subject to meeting development conditions |
Project description
In July 2023, in a joint release, the Australian and New South Wales Governments announced that a signed agreement had been reached for the Australian Government to invest AUD$70 million to develop a hydrogen hub in Newcastle, noting that Origin Energy in collaboration with Orica is progressing the development of a Hunter Valley Hydrogen Hub project.
In September 2023, it was announced that AUD$45 million in funding through the New South Wales Government’s Hydrogen Hubs Initiative was being made available to progress development of the Hunter Valley Hydrogen Hub project.
In July 2025, ARENA announced AUD$432 million in funding allocated under round 1 to of the Hydrogen Headstart Program to progress Orica’s Hunter Valley Hydrogen Hub project for a 50 MW development. (In October 2024, Origin Energy announced its intention to exit the Hunter Valley Hydrogen Hub project.)
The ARENA release noted that the recipient must satisfy a number of development conditions and as per Headstart guidelines achieve commercial operations before the funding is released, with funding under the program to be paid based on production volumes over a 10-year operating period.
The Orica release following the Hydrogen Headstart Program funding award can be found here. Further information on the project development can be found at the following interview by the Orica CEO.
The Headstart funding complements fundings provided through Federal and New South Wales Government programs to establish the first phase of Hunter Valley Hydrogen Hub project development.
The initial phase of the project involves the development of the hydrogen production facility, hydrogen supply pipeline and recycled water connection on Kooragang Island (in Newcastle around 174 kilometres north of Sydney).
The hydrogen production plant and associated facilities are located in close proximity to the Orica ammonia/ammonium nitrate manufacturing facility also located on Kooragang Island, which is proposed to be the main offtake recipient of the produced hydrogen. A dedicated hydrogen supply pipeline of approximately 720 metres would connect the Hunter Valley Hydrogen Hub production/storage facilities with the Orica ammonia plant.
The initial phase of the Hunter Valley Hydrogen Hub project consists of a 50-MW electrolyser system (comprising several large-scale electrolysis modules) and is expected to generate approximately 4,700 tonnes of renewables-based hydrogen per annum (capable of producing approximately 26,600 tonnes of renewables-based ammonia per annum), reducing the daily natural gas demand for chemical feedstock by around 7.5%. PEM technology has been selected for electrolysis.
The hydrogen hub would be supplied by grid-connected renewable electricity (through purchase and retirement of large-scale generation certificates and/or renewable electricity guarantee of origin certificates in the future) and locally sourced recycled water.
The project completed front-end engineering design (FEED) studies in December 2023 to inform the final technical and commercial details of the development. The project development application, Environmental Impact Statement (EIS) and associated documents were placed on public exhibition in the third quarter of 2023. In May 2024, the project was granted development consent to the development application subject to conditions.
The project proponent is aiming for commissioning in 2028.
The initial phase of the project is focussed on producing renewables-based hydrogen to be consumed by Orica and sales to local industry are under consideration.
(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.)
Reviewed (reviewed by the project proponent): July 2025