Orica advances $432m renewable hydrogen plan in Australia

50 MW renewable-powered electrolysers planned

Orica has taken a final investment decision (FID) to proceed with its Hunter Valley Hydrogen Hub, a major renewable hydrogen project backed by $432m in funding under Australia’s Hydrogen Headstart Program.

The project will install 50 MW of renewable-powered electrolysers to produce about 4,700 tonnes of hydrogen annually.

The hydrogen will replace gas feedstock in ammonia production at Orica’s Kooragang Island facility, reducing emissions from a major industrial process and supporting development of Australia’s renewable hydrogen sector.

The project is supported by the Australian Renewable Energy Agency, which said the decision signals progress toward commercial-scale hydrogen deployment.

ARENA CEO Darren Miller said the move shows growing industry confidence in hydrogen as a decarbonisation tool for hard-to-abate sectors.

“Hydrogen is a complex, capital-intensive industry, but it represents a significant economic and decarbonisation opportunity for Australia,” he said. “This decision signals that renewable hydrogen production can be deployed at scale in Australia, shifting the conversation from concept to deployment, particularly for hard‑to‑abate sectors where it can make the biggest impact.”

The Hunter Valley Hydrogen Hub is part of a broader push by ARENA to accelerate clean hydrogen development, with more than $396 already committed to 68 renewable hydrogen projects since 2017.