Project Overview: Hunter Valley Hydrogen Hub

Australia’s clean hydrogen ambitions have received a fresh boost with federal backing for two major projects in Newcastle. The Port of Newcastle has unveiled the final design for its Clean Energy Precinct (CEP), while Orica secured $432 million in funding for its Hunter Valley Hydrogen Hub. Together, these initiatives signal renewed, albeit more realistic, momentum toward a decarbonised industrial future.

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Key Points

• Orica and Port of Newcastle spearhead two clean energy projects worth nearly $2 billion.
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• Orica’s project receives $432 million from the Hydrogen Headstart program.
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• Port of Newcastle’s CEP unveils final master plan, targeting hydrogen and ammonia production.
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• Projects focus first on domestic decarbonisation and “blue” hydrogen before scaling to green exports.
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• Private investment remains critical for both developments to proceed.

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Project Significance

These projects represent Australia’s most advanced low-carbon energy efforts and could help shift Newcastle from a coal to clean fuels city, potentially generating over 5,800 jobs by 2040 and cutting 1 million tonnes of annual carbon emissions.

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Further Details: Newcastle’s Hydrogen Hopes Rekindled Amid $2 Billion Clean Energy Push

Australia’s clean hydrogen industry is making a comeback. Two major projects in Newcastle have received strong backing, with nearly $2 billion in possible investment.

Energy Minister Chris Bowen has announced $432 million in government funding for Orica’s Hunter Valley Hydrogen Hub. This support comes through the Hydrogen Headstart program. On the same day, the Port of Newcastle shared final plans for its Clean Energy Precinct, which aims to be Australia’s leading clean energy export terminal.

These projects show a shift towards realism. Orica has shelved near-term export plans, and will use a 50-megawatt electrolyser to cut emissions at its ammonia plant on Kooragang Island by 2028. The Port of Newcastle will start with “blue” hydrogen – made from gas with carbon capture – before switching to green hydrogen as more renewable energy becomes available.

The hydrogen industry is adjusting after several failed projects. One example is the $12.5 billion Central Queensland Hydrogen Project, which was cancelled due to high costs. Origin Energy and Korea Electric Power Corporation have also pulled out of hydrogen plans in the Hunter area.

The Port of Newcastle’s Clean Energy Precinct will cover 220 hectares. It’s expected to support 1.6 gigawatts of renewable energy and produce over 600,000 tonnes of green ammonia each year by 2030.

With strong interest from countries like Germany, Japan, and South Korea, the Port of Newcastle hopes to become a major global exporter – turning its coal legacy into a clean energy future.