en.Wedoany.com Reported - The Hunter Valley Hydrogen Hub project has reached a Final Investment Decision (FID), with Plug Power announcing it has secured an order to supply a 50 MW proton exchange membrane (PEM) electrolyzer for the project. This hub is the largest renewable hydrogen project in Australia to reach FID to date and the first project under the Australian government's Hydrogen Headstart program to enter the execution phase.
The project will be built adjacent to Orica's ammonia manufacturing plant on Kooragang Island, using renewable electricity to produce renewable hydrogen through electrolysis technology. The hydrogen is intended to gradually replace natural gas for the production of low-carbon ammonia and ammonium nitrate, which are widely used in the mining, agriculture, and industrial sectors. At full capacity, the facility is expected to produce approximately 4,700 tons of renewable hydrogen per year, potentially replacing about 7.5% of Orica's natural gas consumption at its Kooragang Island plant.
Plug CEO José Luis Crespo stated that the project is a significant milestone for Orica, Australia's hydrogen industry, and Plug. He noted that being selected as the original equipment manufacturer (OEM) for the electrolyzer reflects customer confidence in Plug's technology and large-scale delivery capabilities, adding that Australia is a key part of the company's global growth story and that this project strengthens Plug's presence in the Asia-Pacific region.
The project has secured AUD 432 million in production credits through the Australian Renewable Energy Agency (ARENA)'s Hydrogen Headstart program. Orica Group President Germán Morales said the investment supports the company's manufacturing operations and Australia's industrial capabilities, demonstrating Orica's commitment to maintaining the competitiveness of its manufacturing operations while strengthening Australia's sovereign manufacturing capacity. He mentioned that Plug was chosen due to its proven track record in delivering large-scale PEM systems.
Plug stated that the Hunter Valley project adds a new project to its global hydrogen development portfolio. The company reported that it has deployed over 320 MW of GenEco electrolyzer systems across six continents, and referenced previous installations in Townsville and Chinchilla, Queensland, Australia.
