Orica and Origin announced a collaboration to explore potential for collaborating on the development of a green hydrogen generation facility and associated value chain in the Hunter Valley.
Orica and Origin have signed a Memorandum of Understanding (MoU) to perform a feasibility study on the possibility of a green hydrogen production facility, dubbed the ‘Hunter Valley Hydrogen Hub,’ as well as downstream value chain potential.
The feasibility study will examine how an industrial hydrogen hub could enable use cases that contribute to the development of a significant green hydrogen industry in the Hunter Valley and beyond. This involves providing hydrogen for heavy industry and transportation, converting hydrogen to green ammonia at Orica’s existing Kooragang Island production facility, blending hydrogen into natural gas pipelines, and stimulating Australia’s hydrogen export economy.
Green hydrogen, created via electrolysis utilizing renewable energy sources, has emerged as a potential game changer in Australia’s transition to a low-carbon economy. Green hydrogen would be produced at the proposed center utilizing recycled water and renewable energy via a grid-connected 55MW electrolyser.
The agreement brings together two of the region’s largest energy and chemical companies. Both companies are dedicated to using their current portfolios of renewable energy assets, accessible land, infrastructure, including ammonia manufacture, storage, and distribution facilities, and teams with considerable operational and commercial expertise.
Orica Chief Executive Officer Sanjeev Gandhi said: “We’ve been operating our Kooragang Island site for over 50 years, and are committed to ensuring both our manufacturing facility and the Newcastle region remain competitive in a low carbon economy, while also strengthening Australia’s domestic manufacturing capability. We support both the Federal and New South Wales Hydrogen Strategies, and this partnership will allow us to define opportunities and ways we can contribute to a more sustainable future for the region. This partnership aligns with our corporate strategy and our ambition to achieve net zero emissions by 2050, and our target to reduce our scope 1 and 2 operational emissions by at least 40 per cent by 2030. By partnering for progress, we can drive sustainable change and achieve our decarbonisation ambitions, together.”
The project is a critical milestone in Orica’s transition to a low-carbon economy. Orica is committed to diversifying its operations and ensuring that its Kooragang Island factory remains competitive in a low-carbon economy, while also developing more sustainable goods for clients and broader industrial uses.
The project builds on a number of recent initiatives aimed at ensuring the site’s long-term sustainability, including the recently announced Kooragang Island Decarbonisation Project and the planned installation of Australia’s first tertiary catalyst abatement technology for nitric acid production decarbonisation. The $37 million project is expected to achieve up to 95 percent abatement efficiency compared to untreated levels, resulting in a nearly 50% reduction in the site’s overall greenhouse gas emissions.
Other initiatives aimed at enhancing the site’s sustainability performance include a 99 percent reduction in emissions from the prill tower and a transition to recycled water at the production facility, which saves the Hunter region up to 2.9 billion litres of drinking water each year. Additionally, the site completed a major program of work in 2020 to improve ammonia management, which included the installation of three ammonia flaring devices.
