Hunter Valley Hydrogen Hub
The Hunter Valley Hydrogen Hub project proposes to deliver a safe, reliable, and commercial-scale hydrogen supply chain in the Newcastle industrial and port precinct.
Located on Kooragang Island, Phase 1 of the project aims to decarbonise part of Orica’s nearby ammonia manufacturing plant existing natural gas feedstock with hydrogen. Some hydrogen produced will also be made available as a fuel for buses and trucks, displacing the use of diesel.
The first phase is modest in size and provides an alternative energy source to help local industry decarbonise.
Given the proximity Port of Newcastle’s Clean Energy Precinct and deep-water port, the project is being designed with the potential to be scaled up to an export development in the future, providing employment growth opportunities and further energy diversification for the region.
Who is developing the project?
Origin, in collaboration with Orica, is continuing to assess the development of the hub. The project is currently progressing through the front-end engineering design stage, which will help inform the technical and commercial details of the project, prior to a final investment decision being made.
Origin is Australia’s leading integrated energy company with activities spanning electricity generation, energy retailing, renewable energy, battery storage and rooftop solar.
Origin’s ambition is to lead the energy transition through cleaner energy and customer solutions, underpinned by three strategic pillars: unrivalled customer solutions; accelerate renewable and cleaner energy; and deliver reliable energy through the transition. In striving to accelerate renewable and cleaner energy, Origin is partnering with government and industry to develop a scalable domestic and export hydrogen business.
Orica is one of the world’s leading mining and infrastructure solutions providers. From the production and supply of explosives, blasting systems, mining chemicals and geotechnical monitoring, to innovative digital solutions, Orica sustainably mobilises the earth’s resources.
Operating for nearly 150 years, Orica’s 12,000+ global workforce supports customers across surface and underground mines, quarry, construction, and oil and gas operations. Safety is the top priority for the company, with a strong reputation for conducting business safely and responsibly.
About the Hub
The Hunter Valley Hydrogen Hub has the potential to contribute to Australia’s transition towards net zero by providing a safe and reliable source of hydrogen. As one of the first hydrogen hubs, the project aims to activate the hydrogen industry, assist in meeting decarbonisation targets, while working closely with industry to support innovation, and enable growth.
Hydrogen manufactured at the hub will be used to progressively replace natural gas in Orica's Kooragang Island site’s production of low-carbon ammonia and ammonium nitrate – crucial products for many businesses across NSW including the mining, agriculture, health, and food industries.
Additionally using hydrogen to displace diesel as an alternate road transport fuel able will also help to reduce emissions.
Why hydrogen?
Why Kooragang Island?
The industrial area of Kooragang Island was chosen as the location for the Hub based on its proximity to high energy users, existing skilled workforce, existing energy and port infrastructure and land available for complementary business.
How will the hydrogen be produced?
Hydrogen will be produced by electrolysis, using recycled water and grid-connected electricity supported by the surrender of large-scale renewable generation certificates (LGCs).
Looking ahead, the aim is to develop new renewable generation assets or enter into long-term power purchase agreements (PPAs) with NSW renewable energy developers to secure the energy required for the project. All energy supplied for the operation of the hub would be certified as renewable from these PPAs or from Origin’s LGC portfolio, resulting in produced hydrogen from the hub having a small net carbon footprint.
Where is the water coming from?
The current proposal is to use locally sourced recycled wastewater from the Kooragang Industrial Water Scheme (KIWS). Recycled wastewater, also known as water reclamation and reuse, is physically and chemically treating wastewater to a quality suitable for its intended end use.
Is hydrogen safe?
Hydrogen, like many gases, is highly flammable and must be handled correctly. Origin has extensive experience in generating, storing, and transporting a range of gases such as LNG and LPG, to national and state legislated safety and environmental regulations.
Orica’s Kooragang Island ammonia plant has been producing and using hydrogen for more than 50 years without incident.
The Hunter Valley Hydrogen Hub is being designed with the latest design standards and codes of practice to mitigate and manage hazards and ensure community safety. The facility will be heavily regulated and independently verified as safe to operate.
Hydrogen also safely transported across Australia today in tube trailers which carry up to 400 kilograms of hydrogen.
This project received grant funding from the Australian Government and the NSW Government.