The NSW Government has committed $45 million funding to build the Hunter Valley Hydrogen Hub on Kooragang Island, in northern Newcastle.
The commercial-scale green hydrogen manufacturing facility will be led by Origin Energy and is designed to aid emissions-heavy industries to reduce their dependence on fossil fuels.
The hub will produce green hydrogen through electrolysis which can used to store energy.
It will initially deliver approximately 55MW of electrolyser capacity by 2026, with plans to scale up to 1GW capacity during the next decade.
The electrolyser will be connected to the grid, and the first stage of the project is expected to produce 5500 tons of green hydrogen annually.
A majority of the hydrogen produced will be used by explosives manufacturer Orica at its ammonia manufacturing plant on the Kooragang Island site. Hydrogen will also fuel buses and trucks operating at the hub.
The NSW Government funding adds to the Federal Government’s $70 million commitment to the Hunter Valley Hydrogen Hub that was announced in July 2023.
“The Hunter area is one of NSW’s leading industrial regions that contributes $50 billion to the state’s gross product and has a critical role to play in our clean energy transition,” says NSW Minister for Energy Penny Sharpe.
“Projects such as the Hunter Valley Hydrogen Hub are vital to decarbonising the industrial sector as we work towards a net-zero future.
“The NSW Government is committed to investing in clean technologies which will create new jobs, business opportunities and allow NSW to become a clean energy superpower.”
Sharpe says NSW’s green hydrogen industry has the potential to add $6.4 billion in gross state product and support 10,000 new jobs.
The Hunter Valley Hydrogen Hub project will deliver up to 150 direct jobs, and up to 65 indirect construction jobs in the Hunter region.
Construction is set to commence in 2025 with hydrogen production expected in 2026.