KOORAGANG ISLAND
Hunter Valley Hydrogen Hub
About the project
About the project
The Hunter Valley Hydrogen Hub (HVHH) will deliver a commercial-scale renewable hydrogen production facility integrated with Orica’s existing ammonia operations in the Newcastle industrial port precinct.
Video overview of Orica's Hunter Valley Hydrogen Hub project at Kooragang Island, Newcastle.
Video overview of Orica's Hunter Valley Hydrogen Hub project at Kooragang Island, Newcastle.
The Hub will produce renewable hydrogen to directly replace natural gas feedstock in Orica’s manufacture of lower-carbon ammonia and ammonium nitrate. These products are critical for many industries across New South Wales and Australia, including mining, agriculture, health and food.
Located adjacent to Orica’s Kooragang Island operations, the Hub will produce hydrogen via electrolysis using recycled water and grid-connected electricity, supported through renewable energy sourcing including Large-scale Generation Certificates (LGCs) and Renewable Electricity Guarantee of Origin (REGO) certificates.
The Hub is a first-of-its-kind project that will decarbonise one of Australia’s largest industrial ammonia facilities while strengthening sovereign manufacturing capability.
Key facts | |
|---|---|
Project overview | Project type: Renewable hydrogen production hub Project status: SSD 2024 Electrolyser capacity: 50 MW Hydrogen production: ~4,700 tonnes per annum of renewable hydrogen Low-carbon ammonia: ~26,600 tonnes per annum Sovereign manufacturing and end use: Feedstock for low-carbon ammonia and ammonium nitrate, supplying essential industries, including mining, agriculture, food and health |
Environmental benefits | Natural gas replacement: ~7.5% of natural gas demand for chemical feedstock Emissions reduction: ~35,000 tonnes CO₂-e |
Regional benefits | Construction jobs: up to160 jobs Operational jobs: up to 10 roles Local economy: ~$75M local and regional investment during design and construction Reduced gas demand: Equivalent to the annual gas use of up to 50,000 homes |
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Benefits
The project will deliver tangible economic and environmental benefits for Australia and the Hunter region, supporting jobs, industry and emissions reduction. Orica is committed to ensuring these benefits are shared locally through transparent engagement with businesses, communities and Traditional Owners alongside partnerships with education and training providers.
Industrial decarbonisation at scale
- Directly contributes to the region’s industrial decarbonisation, supporting the transition of a large, skilled workforce currently employed in high-emitting industries
- Supports the domestic decarbonisation of Orica’s hard-to-abate, safeguard-listed ammonia manufacturing facility
- Establishes early capability in hydrogen production and integration, developing local expertise and a skilled workforce
- Demonstrates a practical pathway for decarbonising heavy industry in Australia
Strengthening Australian manufacturing
- Strengthens Orica’s manufacturing capability in Australia, supporting supply chain resilience at a time of heightened geopolitical uncertainty
- Secures domestic production of critical inputs, including ammonia and ammonium nitrate, for key industries
- Reduces exposure to volatile global energy markets through domestic renewable hydrogen production
- Supports more efficient use of domestic energy resources, including freeing up to 1 PJ of natural gas annually, equivalent to the energy needs of ~50,000 homes
Building a new energy industry
- Creates a skilled regional workforce in hydrogen technologies and supports growth of related industries
- Positions Newcastle and the Hunter Valley as a hydrogen and low-carbon fuels hub
- Leverages its portside location to enable future export opportunities and downstream industry development
- Builds on Orica’s 50+ years of continuous operation on Kooragang Island, underpinned by a strong local licence to operate and supporting long-term site sustainability
Government partnerships
The HVHH is supported by significant Australian Government and state investment, reflecting its critical role in Australia’s energy transition.
- $70 million from the Australian Government’s Hydrogen Hubs Implementation Initiative
- $45 million from the NSW Government’s Hydrogen Hub Initiative to support capital costs, including design and construction
- $432 million from the Australian Renewable Energy Agency’s (ARENA) Hydrogen Headstart Program. The funding provides partial revenue support in the form of production credits, payable only once the project is commercially operational. ARENA support is performance-linked, milestone-gated and delivered over 10 years, with specific delivery requirements for Orica
Frequently asked questions
Frequently asked questions