The NSW Government has signed a $45 million funding agreement to build the Hunter Valley Hydrogen Hub on Kooragang Island.
The Hunter Valley Hydrogen Hub will produce green hydrogen through electrolysis (splitting water), which can be used to store energy and as a feedstock in industrial processes.
Penny Sharpe, NSW Energy Minister, said projects like Hunter Valley Hydrogen are vital to decarbonising the industrial sector as we work towards a net-zero future.
“A green hydrogen industry in NSW has the potential to support 10,000 new jobs and add $6.4 billion in gross state product.
“The Hunter area is one of NSW’s leading industrial regions that contributes $50 billion to NSW’s gross state product and has a critical role to play in our state’s clean energy transition.”
The project, led by Origin Future Fuels (Origin) with funding from the Commonwealth and NSW Governments, will be a regional cornerstone of the hydrogen industry, accelerating NSW’s shift towards clean technologies and net zero.
The hub will initially deliver approximately 55 megawatts of electrolyser capacity by 2026, with the aim of scaling up to over 1 gigawatt of capacity over the next decade.
The hydrogen produced by the hub will be used by industry, with the majority going to Orica’s nearby ammonia manufacturing facility to help decarbonise its operations. Hydrogen will also be made available to transport customers through onsite and satellite refuelling stations.
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