The New South Wales Government has green lighted the development of a new hydrogen hub in the Hunter Valley.
The $207.6 million Hunter Valley Hydrogen Hub has secured planning approval, and this State Significant Development is expected to commence construction in mid-2025. Project delivery is led by Origin Future Fuels, in collaboration with Orica.
“This facility will be a regional cornerstone of the hydrogen industry, accelerating NSW’s shift towards clean technologies and net zero,” Minister for Climate Change and the Environment Penny Sharpe said.
“The Minns Government is committed to seeing viable renewable projects move through the planning system efficiently to make sure we are working towards our goal of Net Zero by 2050.
“Without a supportive or efficient planning system in NSW we are not going to have the investment we need to decarbonise our industries and support job growth in our regions,” Minister for Planning and Public Spaces Paul Scully said.
The Hunter Valley Hydrogen Hub will initially deliver up to 55MW of electrolyser capacity by 2026 and possibly increase to over 1GW of capacity over the next 10 years.
This project is expected to support the State’s growing hydrogen industry by establishing a commercial-scale green hydrogen supply chain as well as a hydrogen refuelling network for the Hunter Region and New South Wales.
Hydrogen produced from the hub will be supplied to industry, with most of it will go to Orica’s nearby ammonium nitrate manufacturing facility to help decarbonise its operations with green hydrogen while also making it available to transport customers through onsite and satellite refuelling stations.
“NSW has the potential to be a leading producer of green hydrogen and so does the Hunter as the country’s largest regional economy.
“The approval of the Hub follows this week’s announcement of the Future Jobs and Investment Authority.
“It is a clear sign that the NSW Government is investing in the future of the Hunter, shoring up our energy grid and unleashing the Hunter’s potential to once again be a manufacturing powerhouse.
“Workers expect the NSW Government to be making investments to unlock new industry in the Hunter and ensure our region has stable, good paying jobs well into the future.
“Today’s announcement demonstrates the NSW Government is ambitious about our community’s future,” Minister for the Hunter Yasmin Catley said.
The Hunter Valley Hydrogen Hub, which is located at Kooragang Island, is expected to save an equivalent of more than 52,000 tonnes of greenhouse gas emission annually from Orica’s facility.
Approximately 160 jobs are expected to be created through its construction and a further 10 ongoing jobs once the hub is operational.
This new hydrogen hub is funded by $45 million from the New South Wales Department of Climate Change, Energy, the Environment and Water as well as $70 million from the Commonwealth Department of Climate Change, Energy, the Environment and Water.
“Green hydrogen will play a critical role in Australia’s transformation to net zero. I am pleased to see this important project progressing, following the $70 million investment from the Commonwealth Government.
“The Albanese Labor Government is committed to supporting carbon intensive regions like ours to take advantage of the economic and job opportunities that come with more affordable and reliable renewable energy,” Federal Member for Newcastle Sharon Claydon said.
Source: NSW Government – Media Releases; Hunter Valley Hydrogen Hub; PV Magazine Australia