The New South Wales Government has announced the signing of a $45 million funding agreement to build the Hunter Valley Hydrogen Hub, which is set to provide emissions-intensive industries with a renewable alternative to fossil fuels.
The project, led by Origin Future Fuels (Origin) with funding from the Federal and New South Wales Governments, will be a regional cornerstone of the hydrogen industry, accelerating the state’s shift towards clean technologies and net zero.
The Hunter Valley Hydrogen Hub will produce green hydrogen through electrolysis (splitting water), which can be used to store energy and as a feedstock in industrial processes. The hub will initially deliver approximately 55MW of electrolyser capacity by 2026, with an aim to scale up to over 1GW of capacity over the next decade.
The hydrogen produced by the hub will be used by industry, with the majority going to Orica’s nearby ammonia manufacturing facility to help decarbonise its operations. Hydrogen will also be made available to transport customers through onsite and satellite refuelling stations.
The project will deliver up to 150 direct (construction and ongoing) jobs, and up to 65 indirect construction jobs in the Hunter.
The New South Wales Government is committed to growing the hydrogen sector as a future industry for New South Wales. The state has previously approved $28.5 million for the Illawarra Hydrogen Technology Hub and $35.8 million for the Good Earth Green Hydrogen and Ammonia Project in Moree.
New South Wales Energy Minister, Penny Sharpe, said that a green hydrogen industry in New South Wales has the potential to support 10,000 new jobs and add $6.4 billion in gross state product.
“The Hunter area is one of New South Wales’s leading industrial regions that contributes $50 billion to the state’s gross product and has a critical role to play in our state’s clean energy transition,” Ms Sharpe said.
“Projects like the Hunter Valley Hydrogen are vital to decarbonising the industrial sector as we work towards a net zero future.
“The New South Wales Government is committed to investing in clean technologies which will create new jobs, business opportunities and allow New South Wales to become a clean energy superpower.”