The news: Explosives and fertiliser maker Orica has made a final decision on the development of a commercial-scale green hydrogen production facility in the Hunter Valley that will be integrated with its existing ammonia facility.
The numbers: Orica is expected to spend between $245 million and $283 million on the project out to 2029, excluding government support.
It has received $70 million in capital expenditure support from the federal government’s regional hydrogen hubs program and $45 million from the NSW government’s hydrogen hub initiative.
The Australian Renewable Energy Agency has also committed $432 million in production credits to support the facility once operational.
The electrolyser will have a capacity of 50 megawatts, producing about 4,700 tonnes per annum of hydrogen. This will replace about 7.5% of the natural gas feedstock from the adjacent ammonia plant, cutting emissions by about 35,000 tonnes of carbon dioxide equivalent.
The context: Construction is expected to begin in 2026 with first production targeted for early 2029. Orica said the facility will use recycled water as a feedstock to hydrogen production.
