Origin Energy Hunter Valley Hydrogen Hub gets A$70m funding boost
Origin Energy has secured A$70 million in federal funding for its proposed Hunter Valley Hydrogen Hub (HVHH) in New South Wales under the Australian government’s Regional Hydrogen Hubs program.
The announcement was made during Climate Change and Energy Minister Chris Bowen’s visit to Newcastle. The Hunter Valley Hydrogen Hub, which is being developed in partnership with Orica, aims to establish a reliable commercial-scale green hydrogen supply chain in Newcastle’s industrial and port precinct.
The potential first stage of the Hunter Valley green hydrogen project will include a 55MW electrolyser capable of producing up to 5,500 tonnes of green hydrogen per year. The plan is to generate hydrogen using recycled water and grid-connected electricity, backed by the surrender of large-scale renewable certificates.
Most of the hydrogen will be supplied to Orica and will also be available to transport customers. The green hydrogen hub is being designed with the potential for scaling up to an export operation in the future.
Origin Energy CEO Frank Calabria stated: “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.”
The Hunter Valley Hydrogen Hub will be located near Orica’s Kooragang Island ammonia manufacturing facility, allowing for efficient hydrogen delivery to help decarbonise operations. Additionally, hydrogen will be made available to transport customers via onsite and satellite refuelling stations. The industrial zone of Kooragang Island provides an ideal location for the HVHH due to its proximity to large energy users, skilled workers, and existing energy infrastructure.
The green hydrogen project is currently undergoing front-end engineering design (FEED) which will shape the final technical and commercial specifics of the development. Environmental approvals are also being pursued. Pending a final investment decision, Origin Energy aims to initiate hydrogen production from the Hunter Valley Hydrogen Hub in 2026.