Origin Energy secures $48 million govt funding for hydrogen project

Origin Energy’s Hunter Valley Hydrogen Hub

Origin Energy says it has received A$70 million equivalent to 47.67 million US dollars funding from the federal government for the development of the proposed Hunter Valley Hydrogen Hub (HVHH) in New South Wales.
The Australian power producer announced the release of the funding on Thursday.

The proposed “green hydrogen” production facility project which is been developed in collaboration with the world’s top industrial explosives manufacturer – Orica (ORI.AX) – was unveiled in 2022.
Management of Orica said the project is structured with the potential to be scaled to an export development in the future.
First phase of the project of which production from the site is targeted for 2026 is expected to produce 5,500 metric tons of green hydrogen annually, while a final investment decision on the project in still pending.

Green hydrogen is produced through electrolysis using renewable electricity sources.
According to Origin Hunter Valley Hydrogen Hub (HVHH) is currently developing through front-end engineering model or FEED which is expected to help inform the final technical and commercial details of the development.
It further added that planning is also underway to progress the necessary environmental approvals.
The bulk of the hydrogen will be delivered to Orica’s Kooragang Island ammonia manufacturing facility in Newcastle, NSW.

Origin is one of Australia’s leading energy companies, powering more than four million homes and businesses throughout Australia with electricity, gas, LPG and hot water.
With more than 5,200 employees across generation, retail, exploration and production and a growing interest in future energy and data-driven services, we want to lead the transition to lower emissions by connecting our customers to the energy and technologies of the future.

With over 145 years of expertise, Orica’s 13,000+ community of engineers, scientists, technologists, operators, business specialists and on-site crew support customers in surface and underground mines, quarry, construction, and oil and gas operations. Safety is the top priority for the company, with a strong reputation for conducting business safely and responsibly.

Why hydrogen?

Hydrogen, which has the chemical symbol of H, is the smallest, and most common element in the universe. When hydrogen burns, it reacts with the oxygen in the air to generate heat. This heat is then used to produce energy.
Hydrogen produced from renewable energy has tremendous potential to support decarbonisation in Australia and overseas. It is one of the most abundant elements in the universe and can deliver energy without carbon emissions.