Origin Energy gets $28.6m fund for hydrogen hub dev’t

The hydrogen hub is expected to start operations in 2026, pending final investment.

The New South Wales Government awards Origin Energy $28.6m (A$45m) in funding to support the development of the proposed 55-megawatt (MW) Hunter Valley Hydrogen Hub on Kooragang Island.

In a statement, Ryan Willemsen-Bell, general manager of Future Fuels at Energy, welcomed the funding, noting that government funding “is vital to bridging the commerciality gap that exists for hydrogen projects.”

“We are excited about the potential for hydrogen to contribute to a cleaner future and help Australia reach its decarbonisation goals through substitution into industrial processes and manufacturing and by replacing diesel in heavy transport,” Willemsen-Bell said. 

The funding came following the $44.4m (A$70m) contribution from the Federal Government in mid-July.

Origin has also signed a joint development deal with chemicals firm Orica to support the plans and co-fund the Hub through front-end engineering design.

The company said the hydrogen generated from the hub will be used by Orica’s ammonia manufacturing facility to replace natural gas feedstock in the production of low-carbon ammonia, ammonium nitrate and other products for businesses in the state.

$1 = A$1.58