The Hunter Valley Hydrogen Hub, a renewable hydrogen project linked to Orica’s manufacturing operations in New South Wales, has reached final investment decision (FID), with Plug Power announcing it has secured an order to supply 50 megawatts (MW) of proton exchange membrane (PEM) electrolyzers for the facility.
In a media release, Plug Power said the project is the largest renewable hydrogen project in Australia to reach FID and the first recipient of the Australian Government’s Hydrogen Headstart program to progress to execution.
The Hunter Valley Hydrogen Hub will be built adjacent to Orica’s ammonia manufacturing facility on Kooragang Island, where renewable electricity will be used to produce renewable hydrogen through electrolysis.Â
The hydrogen is intended to progressively replace natural gas in the production of low-carbon ammonia and ammonium nitrate, which are used across the mining, agriculture and industrial sectors.
At full capacity, the facility is expected to produce around 4,700 tonnes of renewable hydrogen annually. Plug said this is expected to displace approximately 7.5 per cent of Orica’s natural gas consumption at the Kooragang Island site.
“Reaching FID on the Hunter Valley Hydrogen Hub is a significant milestone for Orica, for Australia’s hydrogen industry, and for Plug,” Plug CEO José Luis Crespo said.
“Being selected as the electrolyzer OEM for the country’s largest renewable hydrogen project to reach FID, and the first Hydrogen Headstart project to move into the execution phase, reflects the confidence our customers place in Plug’s technology and our ability to deliver at scale.”
Crespo added that Australia is “a key part of our global growth story” and said the project reinforces Plug’s expanding presence across the Asia-Pacific region.
The project received AU$432 million in production credits through the Australian Renewable Energy Agency’s (ARENA) Hydrogen Headstart program.
Orica Group President – AusPac and Sustainability Germán Morales said the investment supports both the company’s manufacturing operations and Australia’s industrial capability.
“This Final Investment Decision is a significant milestone in bringing the Hunter Valley Hydrogen Hub to life,” Morales said.
“It demonstrates Orica’s commitment to maintaining the competitiveness of both our manufacturing operations and the Hunter Valley, while strengthening Australia’s sovereign manufacturing capability.”
He said Orica selected Plug because of its experience in delivering large-scale PEM electrolyzer systems.
“We selected Plug as our electrolyzer OEM because of its proven track record in delivering large-scale PEM systems and their ability to support a project of this complexity and ambition,” Morales said.
“We look forward to bringing this facility online and supplying low-carbon ammonia to the mining, agriculture, and industrial customers who depend on us.”
Plug said the Hunter Valley project adds to its global portfolio of hydrogen developments, with the company reporting more than 320 MW of GenEco electrolyzer systems deployed across six continents.Â
It also noted previous Australian projects, including installations in Townsville and Chinchilla, Queensland, as part of its expanding presence in the region.
