In a significant step towards a hydrogen future, the NSW Government has secured a $45 million funding agreement to establish the Hunter Valley Hydrogen Hub on Kooragang Island. The initiative, led by Origin Future Fuels (Origin) and supported by the Commonwealth and NSW Governments, aims to help high-emitting industries reduce their reliance on fossil fuels.
The Hunter Valley Hydrogen Hub will use electrolysis (water splitting) to produce green hydrogen and act as a regional hub for the hydrogen industry. This is in line with NSW's commitment to clean technologies and achieving net zero emissions. The hub is expected to have an initial electrolyser capacity of around 55 megawatts by 2026, with plans to scale up to over 1 gigawatt over the next decade.
The hydrogen produced will be used by a range of industries, with a significant portion allocated to Orica's nearby ammonia production facility to support its decarbonisation efforts. In addition, the hydrogen will be available to transport customers through both on-site and satellite refuelling stations.
The project is expected to create up to 150 direct jobs (both construction and ongoing) and up to 65 indirect construction jobs in the Hunter region.
The co-located Tertiary Abatement Plant on Kooragang Island, funded by the NSW Government and the Commonwealth's Clean Energy Finance Corporation, has achieved a significant milestone by reducing 250,000 tonnes of carbon dioxide emissions. This is the equivalent of removing 150,000 cars from NSW roads. The plant, which is an integral part of Orica's nitric acid manufacturing operations, is on track to avoid more than 500,000 tonnes of carbon dioxide annually, resulting in a 48% reduction in emissions from the manufacturing site.
This strategic investment is part of the NSW Government's commitment to growing the hydrogen sector as a key industry for the state's future. Notable previous allocations include $28.5 million for the Illawarra Hydrogen Technology Hub and $35.8 million for the Good Earth Green Hydrogen and Ammonia Project in Moree.