Hydrogen Headstart grantee Orica has made a Final Investment Decision (FID) to proceed with its Hunter Valley Hydrogen Hub, which is set to receive $432 million in funding under the program.
The project, which was successful under Round 1 of the Hydrogen Headstart Program, will deploy 50 MW of electrolyser capacity powered by renewable energy to produce around 4,700 tonnes of hydrogen each year.
This hydrogen will replace gas feedstock in the production of ammonia at Orica's Kooragang Island facility, reducing emissions from one of Australia's most intensive industrial processes while helping to establish a domestic market for renewable hydrogen.
ARENA CEO Darren Miller said Orica's decision marked a critical step for large-scale hydrogen projects in Australia.
"This milestone is an important step in demonstrating industry commitment to renewable hydrogen, particularly as a pathway to decarbonise heavy industry and reduce emissions where alternatives are limited," Mr Miller said.
"Hydrogen is a complex, capital-intensive industry, but it represents a significant economic and decarbonisation opportunity for Australia."
"This decision signals that renewable hydrogen production can be deployed at scale in Australia, shifting the conversation from concept to deployment, particularly for hard‑to‑abate sectors where it can make the biggest impact."
Under the Hydrogen Headstart program, projects seeking to produce renewable hydrogen, or derivatives, apply for a production credit delivered over ten years to bridge the commercial gap between the cost of producing renewable hydrogen and market prices.
