Origin Energy has been awarded $70 million in funding from the Federal Government under the Regional Hydrogen Hubs program to progress the proposed Hunter Valley Hydrogen Hub (HVHH).
The HVHH, which is being assessed in collaboration with Orica, aims to support a reliable and commercial-scale green hydrogen supply chain in the Newcastle industrial and port precinct.
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The first stage of the potential HVHH consists of a 55MW electrolyser, which is expected to produce up to 5,500 tonnes of green hydrogen per year. The intention is for the hydrogen to be generated using recycled water and grid-connected electricity, supported by the surrender of large-scale renewable certificates. The majority of the hydrogen will be delivered to Orica, and also made available to transport customers.
The project is being designed with the potential to be scaled up to an export development in the future.
Origin CEO Frank Calabria said, “We are pleased to receive Federal Government funding to support our continued work on the Hunter Valley Hydrogen Hub, one of the leading green hydrogen projects under consideration.
“Working in collaboration with Orica, we have continued to build expertise in different aspects of the hydrogen value chain needed to support successful development of the Hunter Valley Hydrogen Hub. We believe hydrogen has the potential to be a new industry for Australia that could contribute to a cleaner future for manufacturing, transport, and heavy industry.
“There are challenges that still need to be overcome for Australia to deliver hydrogen at scale, and strong collaboration across industry, governments and communities will be a critical factor to success,” Calabria said.
A site has been secured close to Orica’s Kooragang Island ammonia manufacturing facility, allowing for the efficient delivery of hydrogen to help decarbonise operations. Origin also intends to make hydrogen available to transport customers through onsite and satellite refuelling stations.
The industrial area of Kooragang Island is an ideal location for the HVHH given its access to large energy users, skilled workers, and existing energy infrastructure.
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The HVHH is currently progressing through front-end engineering design (FEED), which will help 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 will target first hydrogen production from 2026.
