Origin receives $45 million to progress Hunter Valley Hydrogen Hub

Origin has received $45 million in funding to progress the Hunter Valley Hydrogen Hub. The funding was announced by the Hon Penny Sharpe MLC, NSW Minister for Climate Change, Minister for Energy, Minister for the Environment, and Minister for Heritage during a visit to Newcastle. Origin GM Future Fuels Ryan Willemsen-Bell welcomes the contribution of NSW Government funding towards developing a safe and reliable commercial-scale hydrogen supply chain in the Newcastle industrial and port precinct.

Key Highlights:

* The support from the government is important in bridging the commerciality gap for hydrogen projects and demonstrating the technology's scalability.

* Origin is collaborating with Orica to progress the proposed project, aiming to decarbonize their nearby ammonia manufacturing operations.

* The Hunter Valley Hydrogen Hub would also offer hydrogen as a viable future fuel option for mobility customers.

Original Press Release:

Sept. 28 -- Origin Energy Limited issued the following news release:

Origin has been awarded $45 million in funding from the NSW Government’s hydrogen hubs initiative to progress the proposed Hunter Valley Hydrogen Hub on Kooragang Island.

The funding was announced during a visit to Newcastle by the Hon Penny Sharpe MLC, NSW Minister for Climate Change, Minister for Energy, Minister for the Environment, and Minister for Heritage.

Origin GM Future Fuels Ryan Willemsen-Bell said, “Origin welcomes the contribution of NSW Government funding towards developing a safe and reliable commercial-scale hydrogen supply chain in the Newcastle industrial and port precinct.

“Support from government is vital to bridging the commerciality gap that exists for hydrogen projects today, helping to demonstrate the technology can be produced at scale.

“We are pleased to be collaborating with Orica to progress this proposed project with a view to helping decarbonise their nearby ammonia manufacturing operations, while the Hub would also offer hydrogen as viable future fuel option for mobility customers.

“We are excited about the potential for hydrogen to contribute to a cleaner future and help Australia reach its decarbonisation goals through substitution into industrial processes and manufacturing and by replacing diesel in heavy transport,” Mr Willemsen-Bell said.

Origin recently signed a joint development agreement with Orica to progress plans and co-fund the proposed Hub through front-end engineering design (FEED) and continues to engage with the local community through the recent public EIS exhibition process.

The NSW Government funding announcement follows a $70 million contribution from Federal Government announced in mid-July.

Pending a final investment decision, first hydrogen production is being targeted from 2026.

About the Hunter Valley Hydrogen Hub

Hydrogen will be produced by an electrolyser (approximately 55MW) using recycled water?and grid-connected electricity, supported by the surrender of large-scale renewable certificates.

The first stage of the Hunter Valley Hydrogen Hub is expected to produce up to 5,500 tonnes of hydrogen per year.

Most of this produced hydrogen will be used to help decarbonise Orica’s nearby ammonia manufacturing facility replacing natural gas feedstock in the production of low carbon ammonia and ammonium nitrate, crucial products for many businesses across NSW including the mining, agriculture, health and food industries.

Origin also intends to make hydrogen available to transport customers, displacing the use of diesel in busses and trucks. The project is being designed with the potential to be scaled up to support further domestic decarbonisation and future export development, given proximity to Port of Newcastle’s Clean Energy Precinct and deep-water port.

Source: Origin Energy Limited

[Category: Transportation Infrastructure, Marine Ports & Services, Funding Activities, ESG]