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Kooragang Island to house multi-million dollar hydrogen hub

The NSW Government has signed off on a $207.6 million hydrogen hub to help power industry in the Hunter Region.
Hunter Valley Origin Hub render

More than 52,000 tonnes of greenhouse gas emissions are expected to be saved by a NSW ammonium nitrate manufacturer as it moves to fuel its business with hydrogen.

Chemical producer, Orica, has signed on to take hydrogen from Origin Future Fuels’ $207.6 million hydrogen hub that was approved this week by the NSW State Government to be built at Kooragang Island, near Newcastle.

Construction work is expected to start in the middle of next year with the aim of delivering up to 55 megawatts of electrolyser capacity by 2026 – and then scaling up to more than 1 gigawatt of a capacity in the 10 years after that.

The hub will produce green hydrogen, by splitting water into hydrogen and oxygen. The majority of the output will go to Orica, although the hub will eventually fuel local business, including transport operations.

NSW Climate Change and Environment minister Penny Sharpe says the project will accelerate the State’s shift towards clean technologies and help it meet the targets of NSW being net zero by 2050.

For the Hunter Valley region the project will mean jobs and a future source of green energy, both welcomed by local Minister for the Hunter Yasmin Catley.

“NSW has the potential to be a leading producer of green hydrogen and so does the Hunter as the country’s largest regional economy,” Catley says.

“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.”

The project, which has attracted $70 million worth of funding from the Federal Government, will create 160 construction jobs with 10 ongoing roles. It has also been funded by $45 million from the NSW Department of Climate Change, Energy, the Environment and Water.

More details on the hub can be found at the Hunter Valley Hydrogen Hub project page.

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