Australia's Orica reaches final investment decision for Hunter Valley Hydrogen Hub
The world's largest mining-dedicated producer of sodium cyanide, Orica, has reached a final investment decision on the Hunter Valley Hydrogen Hub, in New South Wales.
The development will comprise a commercial-scale renewable hydrogen production facility integrated with the company's existing ammonia manufacturing facility at Kooragang Island.
The facility will be constructed by specialised contractors using well established technology deployed at scale internationally and will use recycled water and renewable electricity to produce renewable hydrogen for ammonia production.
The facility is expected to produce 4 700 t/y of renewable hydrogen, sufficient to produce about 26 600 t of low-carbon ammonia a year and reduce Orica’s natural gas feedstock demand by about 7.5%.
Construction of Orica’s Hunter Valley Hydrogen Hub is scheduled to start before the end of the year, with first production targeted for early 2029.
Capital expenditure (capex) related to construction of the hub is expected to be in the range of $245-million to $283-million across 2026 to 2029 - net of government capital funding.
Orica estimates the 2026 net capex for the project to range between $25-million and $37-million. This is incremental to Orica’s existing business capex which is expected to be broadly in line with last year's $460-million spend.
Notably, the hydrogen project is supported by Australian and New South Wales state government, as well as the Australian Renewable Energy Agency.
The hub is a first-of-its-kind project that will decarbonise one of Australia’s largest industrial ammonia facilities while strengthening sovereign manufacturing capability.
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