More than $400 million has been granted to a renewable hydrogen project in New South Wales.
ARENA CEO Darren Miller said Orica’s Hunter Valley Hydrogen Hub (HVHH) was set to receive up to $432 million in grant funding as the second recipient of the renewable energy agency’s Hydrogen Headstart Program.
Mr Miller said the allocation followed $814 million being awarded to Copenhagen Infrastructure Partners’ (CIP) 1500 MW Murchison Green Hydrogen Project in Western Australia.
He said the HVHH would produce renewable hydrogen using a 50-megawatt electrolyser powered by renewable electricity.
“This hydrogen will replace natural gas in Orica’s ammonia production process, helping to reduce carbon emissions.”
Mr Miller said hydrogen had an important role to play in decarbonising heavy industry, particularly where electrification wasn’t possible or where other alternatives were limited or didn’t exist.
“Renewable hydrogen is an important decarbonisation lever for applications like ammonia production where hydrogen has traditionally been produced with fossil fuels.
“By replacing natural gas-derived hydrogen with clean, renewable alternatives, projects like Orica’s are helping to decarbonise core industrial processes while preserving domestic manufacturing and unlocking new export opportunities,” said Mr Miller.
