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Highlights
Orica Ltd to decarbonise ammonia production using green hydrogen
ARENA backs the Hunter Valley Hydrogen Hub under Hydrogen Headstart
Project aims to support jobs and accelerate Australia’s energy transition
The industrial chemicals and explosives sector saw a significant clean energy development as Orica Ltd (ASX:ORI), a constituent of the ASX 100, secured support from the Australian Renewable Energy Agency (ARENA) for its Hunter Valley Hydrogen Hub (HVHH) initiative. The project, based on Kooragang Island in New South Wales, aims to substitute fossil gas with renewable hydrogen in ammonia manufacturing — a cornerstone of Orica's industrial footprint.
This move is aligned with national efforts to reduce industrial emissions and promote domestic renewable energy innovation across major industrial facilities.
Electrolyser to Enable Green Hydrogen Production at Scale
Central to the HVHH is the installation of a large-scale electrolyser, which will be powered entirely by renewable sources. This facility will produce green hydrogen intended to displace a share of the natural gas used in the production of ammonia — a chemical critical to fertiliser and explosives production for both mining and agricultural applications.
The Kooragang Island site, operational for over five decades, plays a vital economic role in the Hunter region. Its transformation into a cleaner production centre is positioned as a milestone in decarbonising industrial processes across legacy facilities.
Federal Initiative Backs Industrial Transition Through ARENA
The funding support stems from the federal government’s Hydrogen Headstart Program, designed to accelerate large-scale renewable hydrogen projects by narrowing the commercialisation gap. The backing of the HVHH comes alongside ARENA’s broader agenda to facilitate the adoption of clean hydrogen as a substitute in hard-to-electrify industrial segments.
The HVHH project joins a growing list of initiatives aimed at establishing Australia as a frontrunner in the global green hydrogen market.
Orica and Government Collaboration Marks Decarbonisation Milestone
Orica’s Managing Director and CEO, Sanjeev Gandhi, emphasised the company's commitment to spearheading low-emissions industrial transformation in the Hunter Valley. Through ongoing collaboration with government agencies, the company aims to position Kooragang Island as a flagship model for sustainable manufacturing.
ARENA CEO Darren Miller noted that green hydrogen applications, such as Orica's, highlight the role renewable energy can play in replacing fossil-derived feedstocks. The strategic focus remains on ensuring delivery of industrial outcomes while supporting energy transition objectives.
Project Outlook Anchored in Long-Term Industrial Renewal
The HVHH is structured to deliver both environmental and economic outcomes over time. Beyond emissions reductions, the initiative is expected to sustain regional jobs, increase renewable energy demand, and strengthen domestic production capabilities.
