The Hon Chris Bowen MP, Minister for Climate Change and Energy
Sharon Claydon MP, Member for Newcastle
The Albanese Government is securing Australia's energy future with a Hydrogen Headstart investment in Orica's Hunter Valley Hydrogen Hub.
The project will secure the future of ammonia and explosives manufacturing at Kooragang Island by reducing its reliance on gas. This keeps local manufacturing competitive and sustainable, supporting jobs and the long-term future of the industry in the Hunter.
Located on Kooragang Island in the heart of the Hunter Region, the project will deploy a 50 MW electrolyser powered by renewable energy, producing around 4,700 tonnes of green hydrogen each year.
By switching from gas to green hydrogen, the project will also significantly cut emissions from Orica's ammonia production facility and help produce green ammonia for domestic use across mining, agriculture and manufacturing sectors.
It will also help open Australia to exporting clean renewable hydrogen and renewable ammonia overseas, and the jobs and economic benefits that will come with it as the world looks to decarbonise.
Delivered through the Australian Renewable Energy Agency (ARENA), the funding will bring down costs and accelerate the uptake of renewable hydrogen in heavy industry.
Hydrogen Headstart supports large-scale renewable hydrogen projects such as Orica's by bridging the commercial gap between the cost of producing renewable hydrogen and the current market price.
Before funding is released, Orica will work closely with ARENA to meet a number of conditions and demonstrate progress toward key milestones.
This $432 million announcement follows the $814 million awarded to Copenhagen Infrastructure Partners' Murchison Green Hydrogen Project in Western Australia earlier this year. Together, these two landmark investments mark the conclusion of Hydrogen Headstart Round 1.
Building on this success, Round 2 is now open for consultation here: https://arena.gov.au/funding/hydrogen-headstart-round2/
This is an opportunity for industry to help refine implementation of the program and take on lessons for the first round. Consultation will run for 4 weeks with a view to opening the next round of the program in the coming months.
Quotes attributable to Minister for Climate Change and Energy Chris Bowen:
"The Hunter Valley Hydrogen Hub is securing long-term, high-quality jobs for the region, while decarbonising industries that are vital to our economy.
"This investment shows we can secure existing industries such as ammonia and fertiliser production by transforming how they're powered - creating new clean-tech jobs and future-proofing the Hunter's economic base.
"Regional communities like the Hunter will lead the way in Australia's transformation into a renewable energy superpower - and this project is a great example of what that looks like in practice."
Quotes attributable to Member for Newcastle Sharon Claydon MP:
"This landmark investment puts our region right at the forefront of Australia's clean energy future.
"The $432 million investment will create good local jobs, drive innovation, reduce emissions, and help position Newcastle and the Hunter as a national leader in renewable energy production.
"This builds on the Albanese Labor Government's significant investments in new energy infrastructure at the Port of Newcastle, in clean energy training at TAFE, and in research and development at the University of Newcastle.
"Newcastle and the Hunter has powered Australia for generations, and with this investment, will continue to do so, but in a way that is sustainable and future focused."
