NSW announces $45 million commitment to Hunter Valley Hydrogen Hub
The Hunter Valley Hydrogen Hub has now received substantial financial support from both the state and federal governments.
Earlier today, NSW Minister for Climate Change, Minister for Energy, Minister for the Environment Penny Sharpe announced funding from the NSW Government’s Hydrogen Hubs Initiative of $45 million to progress the proposed Hunter Valley Hydrogen Hub on Kooragang Island.
The NSW Government funding announcement follows a $70 million contribution from the Federal Government announced in mid-July.
Partnering with Origin Energy on the Hunter Valley Hydrogen Hub, Orica is aiming to deliver a commercial-scale renewable hydrogen supply chain in the Newcastle industrial and port zone.
The Hydrogen Hub will be located next to Orica’s Kooragang Island manufacturing site in Newcastle, in recognition of the competitive advantages of a strategic location on the Port of Newcastle and an established end market. It is also the only ammonia plant operating on Australia’s east coast with direct access to a deep-water port and the Port of Newcastle’s Clean Energy Precinct.
Orica’s Kooragang Island facility is presently one of NSW’s largest industrial users of gas – using approximately 10-15 percent of total NSW gas per year. Orica hopes to further reduce its Scope 1 emissions while producing low-carbon ammonia for possible export and freeing up domestic gas supply for Australian households.