PERTH (miningweekly.com) – Energy major Origin Energy has unveiled plans for a potential Hunter Valley hydrogen hub, signing a memorandum of understanding (MoU) with fellow listed Orica to conduct a feasibility study into the hub and to investigate downstream value chain opportunities.

Origin said on Monday that the Hunter Valley Hydrogen hub would produce green hydrogen from sustainably sourced water and renewable electricity from Origin’s portfolio, using a grid connected 55 MW electrolyser.

Project design will allow the hydrogen production facility to be scaled up through subsequent phases offering future expansion, including potential hydrogen export capability.

Future stages will also include investigating the feasibility of converting the local gas distribution network to 100% hydrogen to further support a hydrogen supply chain in the area.

In addition to transforming industrial and manufacturing processes the hub has the potential to drive greater hydrogen mobility applications with several heavy vehicle and transport users offering support to the project including Red Bus Services, Aluminium Revolutionary Chassis Company (ARCC) and ComfortDelGro Corporation Australia (CDC).

The feasibility study will assess ways an industrial hydrogen hub could enable use cases that support a meaningful green hydrogen industry in the Hunter Valley and beyond. This includes the supply of hydrogen for heavy industry and transport, conversion into green ammonia at Orica’s existing Kooragang Island manufacturing facility, blending hydrogen into natural gas pipelines, and the potential to stimulate Australia’s hydrogen export industry.

“By collaborating with Orica and other partners, we have an invaluable opportunity to further explore how green hydrogen could help to power a cleaner future for manufacturing, transport and industrial customers in Australia,” Origin CEO Frank Calabria said.

“Both Origin and Orica are well established in the Hunter region and bring considerable expertise in different aspects of the hydrogen value chain, which will help contribute to the continued development of this emerging industry.

“Reducing emissions from Australia’s manufacturing sector will be key to achieving the nation’s ambition to be net zero emissions by 2050, and this will only be achieved if the energy industry, customers and governments work together to support the development of hydrogen as a future energy source,” he said.

Orica CEO Sanjeev Gandhi said that the company has been operating the Kooragang Island site for over 50 years, and are committed to ensuring both its manufacturing facility and the Newcastle region remain competitive in a low carbon economy, while also strengthening Australia’s domestic manufacturing capability.

“We support both the Ffederal and New South Wales Hydrogen Strategies, and this partnership will allow us to define opportunities and ways we can contribute to a more sustainable future for the region.

“This partnership aligns with our corporate strategy and our ambition to achieve net zero emissions by 2050, and our target to reduce our scope 1 and 2 operational emissions by at least 40% by 2030. By partnering for progress, we can drive sustainable change and achieve our decarbonisation ambitions, together.”

He said that the Hunter Valley hub project builds on several initiatives to enhance the long-term sustainability of the site, including the recently announced Kooragang Island decarbonisation project and planned installation of an Australian first tertiary catalyst abatement technology for decarbonisation of nitric acid production.

The A$37-million project is designed to deliver up to 95% abatement efficiency from unabated levels, reducing the site’s total greenhouse gas emissions by almost 50 per cent.

Other initiatives designed to improve the sites sustainability performance include the reduction of emissions from the prill tower of over 99% , and switching the manufacturing facility to recycled water, an initiative that saves the Hunter region up to 2.9-billion litres of drinking water a year. In 2020, the site also completed a comprehensive program of works to improve the way ammonia is managed, including the installation of three ammonia flaring systems on site.