Origin secures $70m for Newcastle hydrogen project
The federal government is tipping $70 million into Origin Energy’s green hydrogen project in Newcastle, which would help cut emissions at Orica’s manufacturing operations in NSW while also providing carbon-free fuel for buses and heavy trucks.
The proposed Hunter Valley Hydrogen Hub, the full cost of which Origin has yet to reveal, will produce up to 5500 tonnes a year of renewables-based hydrogen. Most of the fuel will be used in the ammonia and ammonium nitrate plant at Kooragang Island owned by Orica, the world’s largest explosives maker.
The hydrogen project will be built next to Orica’s Kooragang Island plant in Newcastle.
The project, which was unveiled by Origin and Orica in February last year, will use a 55-megawatt electrolyser, more than five times bigger than the biggest currently committed in Australia.
It has yet to reach a final investment decision, with engineering design work still under way, and environmental approvals still to be secured.
The plant will use electricity from the grid to power the electrolyser, which will split recycled water into hydrogen and oxygen. Renewable energy certificates will be secured and surrendered so the electricity can qualify as green.
Construction is targeted to get under way in 2025 and production to start the following year. The plant could be scaled up in size in later phases, and potentially be used to export carbon-free fuel overseas.
Origin chief executive Frank Calabria said there were “challenges” that still needed to be overcome to deliver hydrogen at scale. He said “strong collaboration across industry, governments and communities will be a critical factor to success”, and welcomed the funding from the federal government.
“We believe hydrogen has the potential
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