Hunter Valley Hydrogen Hub

About the project

The Hunter Valley Hydrogen Hub is a renewable hydrogen project being developed at Kooragang Island in Newcastle, New South Wales, Australia. The project is designed to support the decarbonisation of existing industrial operations in the Hunter region. Located within the Newcastle industrial and port precinct, the project is focused on establishing a practical, commercial‑scale hydrogen supply chain that integrates with existing manufacturing infrastructure.

The production of renewable hydrogen will occur through electrolysis, using recycled water and renewable electricity via a grid‑connected electrolyser of around 50 megawatts. The initial phase is deliberately sized to enable near‑term delivery, while allowing for future expansion as technology, markets and infrastructure continue to mature.

Renewable hydrogen produced at the hub will be used to progressively replace natural gas in Orica’s ammonia manufacturing processes at Kooragang Island, supporting the production of lower‑carbon ammonia and ammonium nitrate. These products are critical inputs for industries across New South Wales, including mining, agriculture, health and food, helping to reduce emissions while sustaining local jobs and industrial capability.

Orica looks forward to continuing our collaboration with the federal and New South Wales governments as we progress the Hunter Valley Hydrogen Hub project with government ministers and responsible agencies.

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

Towards net zero

The project will play an important role in Orica’s decarbonisation journey and support our ambition to achieve net zero emissions by 2050.

Hydrogen is a critical input in the manufacture of ammonia. Today, this hydrogen is produced from natural gas, a fossil fuel, with carbon dioxide generated as a by‑product. Orica has safely produced and used this form of hydrogen at its Kooragang Island ammonia plant for more than 50 years, making the transition to renewable alternatives a natural next step.

In the first phase of the Hunter Valley Hydrogen Hub, Orica expects to take up to 100 per cent of the renewable hydrogen produced, piping it directly to the ammonia plant and displacing around 7.5 per cent of current natural gas use. This shift will significantly reduce greenhouse gas emissions—equivalent to removing approximately 26,500 cars from the road each year while freeing up domestic gas supply for Australian households.

Compelling advantages

The project represents a strong opportunity within Australia’s renewable hydrogen and low‑carbon ammonia manufacturing landscape, building on existing industrial capability and infrastructure.

Located about 550 metres north of Orica's Kooragang Island manufacturing facility, the project benefits from close integration with existing operations. It will have direct access to the ammonia plant, which is uniquely positioned on Australia’s east coast and adjacent to a deep‑water port, which supports production and logistics efficiencies.

Being located near the Port of Newcastle’s Clean Energy Precinct, the project aligns with the region’s broader clean energy transition and supports future development opportunities.

Future-proofing our region

We aim to be a leading player in Australia’s renewable hydrogen, low carbon ammonia economy. Renewable hydrogen production will help diversify the energy mix in our region, provide employment growth opportunities and offer a low-carbon energy source.

We are deeply committed to future-proofing our manufacturing operations, and the economy. We will maintain supply chain sovereignty, while also supporting our customers to achieve their sustainability goals. Collaboration with government, community, industry, academia and commercial partners will be critical to the success of the Hunter Valley Hydrogen project.