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Origin Energy Secures Government Funding for Hunter Valley Hydrogen Hub

Anela DoksoBy Anela Dokso13/07/20232 Mins Read
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Origin Energy, an Australian power producer, has received A$70 million in funding from the federal government to advance the Hunter Valley Hydrogen Hub (HVHH) in New South Wales.

Developed in collaboration with Orica, the project aims to establish a green hydrogen production facility. This funding injection reinforces the commitment to developing a reliable and commercially viable green hydrogen supply chain, contributing to Australia’s transition to a low-carbon economy.

Green hydrogen, produced through electrolysis using renewable electricity sources, offers a promising pathway to decarbonize industries and reduce reliance on fossil fuels. The HVHH project, in its initial stage, plans to produce 5,500 metric tons of green hydrogen annually. The primary consumer of this hydrogen will be Orica’s ammonia manufacturing facility in Newcastle, New South Wales. The project has been designed with scalability in mind, potentially paving the way for future hydrogen exports.

Origin Energy’s collaboration with Orica and the support from the federal government underscore the commitment to advancing green hydrogen technologies. The A$70 million funding from the government demonstrates its recognition of the project’s potential to drive the growth of Australia’s hydrogen industry and contribute to decarbonization efforts.

The HVHH project is currently undergoing front-end engineering design (FEED) to finalize the technical and commercial aspects of the development. This phase will provide crucial insights into the project’s feasibility and guide decision-making processes. Simultaneously, Origin Energy is progressing with environmental approvals to ensure compliance with regulatory requirements.

With hydrogen production targeted to begin in 2026, the Hunter Valley Hydrogen Hub represents a significant milestone in Origin Energy’s pursuit of a sustainable energy future. By utilizing recycled water, grid-connected electricity, and large-scale renewable certificates, the project aims to deliver green hydrogen efficiently and reduce environmental impact. The partnership with Orica, a leader in industrial explosives, further strengthens the project’s potential for commercial success and long-term viability.

The establishment of the Hunter Valley Hydrogen Hub signifies Australia’s commitment to harnessing the potential of hydrogen as a clean and renewable energy source. The project’s strategic location in the industrial and port precinct of Newcastle positions it to support various industries’ decarbonization efforts and contribute to a greener and more sustainable future.

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