Origin Energy (ASX:ORG) is set to receive $70 million in funding from the Federal Government for its proposed Hunter Valley Hydrogen Hub (HVHH) partnership with Orica (ASX:ORI).
The grant, announced by Energy Minister Chris Bowen, aims to support the development of a reliable and commercially viable green hydrogen supply chain in the industrial and port precinct of Newcastle.
The initial stage of the HVHH project involves the construction of a 55 MW electrolyser, expected to produce up to 5,500 tonnes of green hydrogen annually.
The hydrogen will be generated using recycled water and grid-connected electricity, with support from the surrender of large-scale renewable certificates. The majority of the hydrogen will be supplied to Orica, while also being made available to transport customers.
The project has been designed with the potential for future expansion into export development. A site adjacent to Orica's Kooragang Island ammonia manufacturing facility has been secured for the HVHH.
Currently, the project is progressing through the front-end engineering design (FEED) phase, which will provide crucial insights into the final technical and commercial aspects of the development.
Subject to a final investment decision, Origin aims to commence hydrogen production by 2026, marking an important milestone in the company's journey towards a sustainable energy future.
The collaboration with Orica and the government's financial support highlights the commitment to advancing green hydrogen technologies and facilitating the transition to a low-carbon economy.
The Hunter Valley Hydrogen Hub is poised to play a crucial role in unlocking the potential of hydrogen as a clean and renewable energy source.
With government backing and strategic partnerships, Origin is well-positioned to drive the growth of Australia's hydrogen industry and contribute to the country's decarbonisation efforts.
