Hunter Valley Hydrogen Hub
Hunter Valley Hydrogen Hub
The project proponents are progressing a large-scale renewables-based hydrogen project located in the Newcastle industrial and port precinct.
| Main proponents:
Origin Energy, Orica |
Main end-use classification:
Industrial process – ammonia production, mobility applications also possible |
Status:
Under development – project is progressing through FEED studies |
Estimated cost:
|
| Other involvement:
|
Production details:
Up to 5,500 tonnes of renewables-based hydrogen production per annum, based on a 55-megawatt (MW) electrolyser |
Location:
New South Wales, Australia |
Announced funding:
(Hub implementation) |
Project description
In February 2022, Origin Energy and Orica announced a partnership to conduct a feasibility study into the viability of a renewables-based hydrogen production facility and associated value chain project located in the Newcastle industrial and port precinct.
In July 2023, it was announced that Origin Energy is the recipient of AUD$70 million in funding (through the Australian Government’s Regional Hydrogen Hubs Program – Hub Implementation funding stream) to progress the proposed Hunter Valley Hydrogen Hub project.
The first stage of the proposed project consists of a 55-MW electrolyser, expected to produce up to 5,500 tonnes of renewables-based hydrogen per annum using recycled water and grid-connected electricity, supported by the surrender of large-scale renewable certificates.
The Orica ammonia/ammonium nitrate manufacturing facility located at Kooragang Island in Newcastle is proposed to be the main offtake recipient of the produced (renewables-based) hydrogen.
A site for the hydrogen production plant and associated facilities has been secured on Kooragang Island close to the ammonia manufacturing plant. Origin has indicated it also intends to make hydrogen available for mobility applications through onsite and satellite refuelling stations.
The project is being designed with the potential to be scaled up to an export development in the future.
The project is progressing through front-end engineering design (FEED) studies to inform the final technical and commercial details of the development. Planning is also underway to progress the required environmental approvals.
Pending a final investment decision, Origin is targeting first hydrogen production from 2026.
(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: July 2023