Australia commits $283M to green hydrogen project by Orica

Anadolu Agency

Australia has pledged $283 million to support a green hydrogen project led by explosives manufacturer Orica, aiming to boost renewable energy production and reduce industrial emissions.

The Hunter Valley Hydrogen Hub, to be built on Kooragang Island in New South Wales, will use recycled water and renewable electricity to generate hydrogen through a 50-megawatt electrolyzer. The project, originally planned to begin construction in 2025, was delayed after partner Origin Energy withdrew over cost concerns. It is now expected to be operational by 2028.

The Australian Renewable Energy Agency (ARENA) said the project will help decarbonise core industrial processes by replacing fossil fuel-derived hydrogen with clean alternatives. The plant will initially produce 4,700 tons of hydrogen per year—about 12 tons a day—primarily for domestic use in making low-carbon ammonia and ammonium nitrate used in agriculture, health care, and other sectors.

Energy Minister Chris Bowen said Australia is among the few countries positioned to build a green hydrogen industry at export scale. While exports remain a longer-term goal, domestic demand will drive the hub’s early operations.

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