Chris Bowen, Australia’s Climate Change and Energy Minister, highlighted the project’s role in the nation’s energy strategy. “By switching from gas to green hydrogen, the project will also significantly cut emissions from Orica’s ammonia production facility and help produce green ammonia for domestic use across mining, agriculture, and manufacturing sectors,” Bowen said in a statement. The initiative aligns with Australia’s goal of achieving net-zero emissions, with green hydrogen as a key component.
The investment provides a boost to Australia’s green hydrogen sector, which has faced challenges recently. On June 29, 2025, the A$12.5 billion CQ-H2 project in Queensland was halted after Stanwell, a state-owned energy company, withdrew from the initiative, one of the nation’s largest green hydrogen projects. The Hunter Valley Hydrogen Hub itself encountered difficulties last year when Origin Energy, a former partner, exited due to high costs and market uncertainties.
Orica emphasized that the government’s financial support is vital to address the project’s funding shortfall. “We hope to further contribute to our domestic and international customers' decarbonisation goals by offering low-carbon products, while supporting Orica’s next phase of decarbonisation,” said CEO Sanjeev Gandhi. The company noted growing interest from potential partners in recent months and plans to work toward a final investment decision in the near future.
The first phase of the Hunter Valley Hydrogen Hub is designed to produce up to 12 tonnes of green hydrogen daily, powered by a 50-megawatt electrolyser using renewable energy sources. This development aims to support both domestic industries and international markets by providing sustainable fuel options.
