A 55MW green hydrogen project with a built-in offtaker in New South Wales, Australia, has received planning permission from the state government.
The A$207.6m (US$138.4m) Hunter Valley Hydrogen Hub will use renewable electricity from co-developer Origin Energy’s portfolio and recycled water to produce green H2 that will be utilised by fellow co-developer Orica to manufacture fertilisers and explosives, with the ability for some of the output to be used for refuelling hydrogen-powered vehicles.
The green hydrogen will be piped directly to Orica’s current plant on Kooragang Island, on the edge of the city of Newcastle, to progressively replace natural gas used in the production of ammonia and ammonium nitrate.
Origin — which is one of Australia’s largest power generators and utilities — plans to eventually scale up the project to 1GW to enable exports from the Port of Newcastle, although Hydrogen Insight understands that only up to 60MW of electrolysis capacity has so far been given planning permission.
The project has so far received A$70m from the Australian government and A$45m from the state administration, and has also been shortlisted (both for the 55MW first phase and a 200MW second phase) for further federal subsidies under the A$2bn Hydrogen Headstart programme.
“This facility will be a regional cornerstone of the hydrogen industry, accelerating NSW’s shift towards clean technologies and net zero,” said Penny Sharpe, the state’s minister for climate change and environment.
