ARENA injects $432m into Hunter Valley renewable hydrogen project

This brings the agency’s total renewable allocation to $370m.

The Australian Renewable Energy Agency (ARENA) is allocating $432m to Orica’s Hunter Valley Hydrogen Hub.

In a statement, ARENA said this makes the project the second recipient of a grant under the Hydrogen Headstart Program.

The Hunter Valley Hydrogen Hub will produce renewable hydrogen using a 50-megawatt (MW) electrolyser powered by renewable electricity. This hydrogen will replace natural gas in Orica’s ammonia production process, helping to reduce carbon emissions.

As part of the funding process, Orica must now work with ARENA to satisfy a number of conditions and demonstrate its ability to meet a range of contractual milestones before the funding is released.

Funding under this program is paid based on actual production volumes over a 10-year operating period.

This project follows the announcement of the first recipient of Hydrogen Headstart, with $814m allocated to Copenhagen Infrastructure Partners’ 1,500 MW Murchison Green Hydrogen Project in Western Australia. With both projects now announced, Hydrogen Headstart Round 1 has now concluded.

To date, ARENA has allocated $370m to 65 renewable hydrogen projects.