The NSW Government has granted planning approval for a $207.6 million hydrogen hub in the Hunter region. 

The project, spearheaded by Origin Future Fuels, is scheduled to commence construction at Kooragang Island in mid-2025.

The hydrogen hub will initially deliver approximately 55 megawatts of electrolyser capacity by 2026, with plans to expand to over 1 gigawatt within the next decade. 

Electrolysis, the process used to produce green hydrogen, uses electricity to split water into hydrogen and oxygen. 

The hydrogen produced can serve as a feedstock in industrial processes and as a fuel source for the transport sector.

This development aims to establish a commercial-scale green hydrogen supply chain and a hydrogen refuelling network for the Hunter Region and New South Wales more broadly.  

Most of the hydrogen will be used by Orica's nearby ammonium nitrate manufacturing facility to decarbonise its operations, while the rest will be available for transport customers through onsite and satellite refuelling stations.

The project is anticipated to reduce greenhouse gas emissions from Orica's facility by over 52,000 tonnes annually. 

Additionally, it is expected to generate 160 construction jobs and provide 10 ongoing roles upon completion.

Funding for the hydrogen hub includes $45 million from the NSW Department of Climate Change, Energy, the Environment and Water, and $70 million from the Commonwealth Department of Climate Change, Energy, the Environment and Water.

“This facility will be a regional cornerstone of the hydrogen industry, accelerating NSW’s shift towards clean technologies and net zero,” says Minister for Climate Change and the Environment, Penny Sharpe.

More information on the project is available at the Hunter Valley Hydrogen Hub project page.