Hunter Valley Hydrogen Hub, Australia – update


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.
The first phase of the hub is expected to produce 12 t/d of renewable hydrogen, reducing Orica’s daily natural gas demand for chemical feedstock by about 7.5%, which releases gas back into the grid for domestic consumption. This equates to 4 700 t/y of renewable hydrogen production, which is enough to produce about 26 600 t/y of low-carbon ammonia.
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
The HVHH has received a significant boost with the conditional award of A$432-million in funding from the Australian government through the Hydrogen Headstart programme. The programme is supporting large-scale renewable hydrogen projects to accelerate the development of Australia’s hydrogen industry while helping Australia to connect to new global hydrogen supply chains.
The funding will support the development of a 55 MW electrolyser at the Kooragang Island industrial precinct, which will be powered by renewable energy and supplied with recycled water.
The hub is being jointly progressed by Origin Energy and Orica. Once operational, it will produce green hydrogen to replace natural gas used in Orica’s ammonia manufacturing process at its Kooragang Island facility.
In addition to decarbonising local industrial processes, the project will also support broader hydrogen ecosystem development, with future phases potentially allowing for hydrogen export and integration with regional energy infrastructure.
The funding remains subject to final due diligence and the execution of a formal funding agreement.
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.
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