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Hunter Valley Hydrogen Hub, Australia – update

Image of hydrogen production facility

11th October 2024

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name of the Project
Hunter Valley Hydrogen Hub (HVHH).

Location
New South Wales, Australia.

Project Owner/s
Origin Energy. 

Origin entered into a joint development agreement with Orica in July 2023 to progress the project through front-end engineering and design.

Project Description
Green hydrogen, produced through electrolysis using renewable electricity sources, has emerged as a potentially significant enabler of Australia’s transition to a lower carbon economy.

The project proposed that the hub produce green hydrogen from recycled water sources and renewable electricity using a grid-connected 55 MW electrolyser.

Project design would allow for the hydrogen production facility to be scaled up through subsequent phases, offering future expansion, including potential hydrogen export capability.

Future stages would also include investigating the feasibility of converting the local gas distribution network to 100% hydrogen to further support a hydrogen supply chain in the area.

Potential Job Creation
Not stated.

Capital Expenditure
A$207.6-million.

Planned Start/End Date
Not stated.

Latest Developments
Origin Energy intends to exit its potential hydrogen development project in the A$207.6-million HVHH.

The decision reflects uncertainty regarding the pace and timing of the development of the hydrogen market, and the risks associated with developing capital-intensive projects of this nature, the company said in a statement.

"The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project," Origin CEO Frank Calabria has said.

The project had received New South Wales government planning approval and was targeting a final investment decision. 

It was shortlisted under the Australian Government’s Hydrogen Headstart programme, having previously secured Commonwealth and New South Wales grant funding programme commitments.

Origin remains open to exploring commercial options for the HVHH. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Orica, tel +61 3 9665 7111.
Origin Energy, email media@originenergy.com.au.
 

Edited by Creamer Media Reporter

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