en.Wedoany.com Reported - Plug Power has confirmed that the 50-megawatt (MW) Hunter Valley Hydrogen Hub (HVHH) project in Newcastle, New South Wales, Australia, has reached a final investment decision (FID), moving the project into the execution phase and delivering Plug GenEco proton exchange membrane (PEM) electrolyzers. The hydrogen hub is developed by Orica, a global mining and infrastructure solutions provider operating in over 100 countries worldwide.
Located adjacent to Orica's existing ammonia production facility on Kooragang Island, the project plans to use renewable electricity for electrolytic hydrogen production. The resulting renewable hydrogen will gradually replace natural gas used in the company's production of low-carbon ammonia and ammonium nitrate. These chemicals are key raw materials for Australia's mining, agriculture, and industrial sectors. The Hunter Valley Hydrogen Hub is the largest green hydrogen project in Australia to reach a final investment decision and the first project under the "Hydrogen Headstart" program to enter the execution phase. The program provides AUD 432 million in production subsidies to the project through the Australian Renewable Energy Agency (ARENA).
Once fully operational, the project is expected to produce approximately 4,700 tonnes of renewable hydrogen annually, replacing about 7.5% of Orica's natural gas usage at its Kooragang Island facility, reducing carbon emissions equivalent to taking approximately 26,500 cars off the road each year.
Plug CEO José Luis Crespo stated that the final investment decision for the Hunter Valley Hydrogen Hub is a significant milestone for Orica, Australia's hydrogen industry, and Plug itself. As the electrolyzer supplier for Australia's largest renewable hydrogen project to reach a final investment decision and a partner in the first execution-phase project under the "Hydrogen Headstart" program, this progress demonstrates customer trust in Plug's technology and large-scale delivery capabilities. Australia is a key market in Plug's global growth strategy, and this project helps expand its business coverage in the Asia-Pacific region.
Germán Morales, Orica Group President for AusPac and Sustainability, said the final investment decision is a critical step in building the Hunter Valley Hydrogen Hub. It reflects Orica's ongoing commitment to enhancing the competitiveness of its manufacturing operations and the Hunter Valley region, while also strengthening Australia's self-manufacturing capabilities. More importantly, the project will provide reliable, low-carbon supply of key raw materials for industries such as mining and agriculture. Orica chose Plug as its electrolyzer supplier based on its proven experience in delivering large-scale PEM systems and its ability to navigate complex and challenging projects.
Plug's contract for the Hunter Valley Hydrogen Hub highlights its deep presence in the Australian hydrogen market and its growing global project pipeline. Previously, Plug has been involved in multiple electrolyzer projects in Australia, including an operational project in Townsville and a project in Chinchilla, Queensland.
To date, Plug has deployed over 320 MW of GenEco electrolyzer systems across six continents, leveraging its expanding installed base to optimize system performance, shorten commissioning cycles, and deliver proven, reliable, and scalable hydrogen solutions to customers. The Hunter Valley Hydrogen Hub project further enriches Plug's portfolio of flagship hydrogen projects, which also includes the 100 MW Galp project in Portugal, one of the largest electrolyzer projects in Europe. Meanwhile, the company's global project pipeline continues to transition from development to execution phases.
