Orica Greenlights $283m Hunter Valley Hydrogen Hub Investment to Boost Low-Carbon Ammonia Production
Orica has confirmed a Final Investment Decision to proceed with the Hunter Valley Hydrogen Hub (HVHH), a major renewable hydrogen project integrated into its existing ammonia manufacturing operations at Kooragang Island in New South Wales, Australia. The move marks a significant step in the company’s transition towards lower-carbon industrial production and is expected to strengthen its long-term energy resilience.
The commercial-scale facility will be built by specialist contractors using established hydrogen production technology already deployed internationally. It will utilise recycled water and renewable electricity to produce renewable hydrogen, which will then be used in ammonia production, supporting a reduction in reliance on natural gas as a feedstock. Once operational, the hub is expected to generate around 4,700 tonnes of renewable hydrogen each year, enabling the production of approximately 26,600 tonnes of low-carbon ammonia annually. This shift is projected to cut Orica’s natural gas feedstock demand by around 7.5%.
Construction of the Hunter Valley Hydrogen Hub is scheduled to begin in 2026, with first production targeted for early 2029. The total capital expenditure for the project is forecast to range between $245 million and $283 million across the 2026 to 2029 period, net of government capital support. For 2026 alone, net capital expenditure is expected to be between $25 million and $37 million, in addition to Orica’s broader capital programme, which is anticipated to remain broadly in line with 2025 levels of $460 million.
The project has received backing from Australian and New South Wales State Governments, along with support from the Australian Renewable Energy Agency Australian Renewable Energy Agency, reflecting wider policy efforts to accelerate renewable hydrogen development and decarbonise heavy industry.
