Orica greenlights Kooragang Island hydrogen hub backed by $432 million federal funding
Policarpo Brito / PexelsStainless steel machinery and pipes in an industrial setting.(File image: Policarpo Brito / Pexels)
Newy 87.8 FM – Orica has reached a final investment decision on its Hunter Valley Hydrogen Hub at Kooragang Island, a commercial-scale renewable hydrogen facility to be integrated with the company's existing ammonia plant in Newcastle.
The decision was announced on 1 July 2026. Construction is set to commence this year, with first production targeted for early 2029.
The project is backed by $432 million in production-credit funding over ten years through the federal government's Hydrogen Headstart program, delivered via ARENA. Orica expects net capital expenditure of $245 million to $283 million across 2026 to 2029, net of government capital funding.
The facility is expected to produce about 4,700 tonnes of renewable hydrogen each year, enough for around 26,600 tonnes of low-carbon ammonia annually, cutting the site's natural gas feedstock demand by about 7.5 per cent and reducing emissions by roughly 35,000 tonnes of CO₂-equivalent.
ARENA chief executive Darren Miller described the investment decision as "a critical step" for large-scale hydrogen in Australia.
US company Plug Power announced on 7 July it had won the order to supply GenEco PEM electrolysers for the 50MW project, which it described as the largest Australian renewable hydrogen project to reach a final investment decision.
Orica says the project will create up to 160 construction jobs and up to 10 operational roles, with about $75 million in local and regional investment during design and construction.
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