Orica's Newcastle hydrogen plans in limbo

In July 2023, Orica announced it was working with Origin Energy on the Hunter Valley Hydrogen Hub (HVHH) to deliver a commercial-scale renewable hydrogen supply chain in the Newcastle industrial and port zone, as a major step on Orica’s path to decarbonise its operations.

The company’s plans have now been placed in jeopardy by Origin Energy’s decision this week to exit the HVHH project.

“While we are disappointed by this development, we respect Origin Energy’s decision and are grateful for the progress we made together in advancing Australia’s hydrogen initiatives and we remain committed to exploring new opportunities in this promising sector,” said Orica Managing Director and CEO Sanjeev Gandhi. “We’ve been operating our Kooragang Island site for over 50 years and are committed to ensuring both our manufacturing facility and the Hunter Valley region remain competitive in a low carbon economy, while also strengthening Australia’s domestic manufacturing capability.

“The support of both the federal and the NSW governments for the Hunter Valley Hydrogen Hub project should also be acknowledged, and Orica looks forward to continuing the collaboration with ministers and responsible agencies on the transition of Orica’s Kooragang Island manufacturing facility and the Hunter Valley region.

“We remain open to discussions with interested parties who share our vision for a sustainable energy future and Australia’s hydrogen economy.”

Image caption: Kooragang Island, Newcastle.