Australia's Origin Energy plans to exit Hunter Valley hydrogen hub

ORICA

03/10/2024 04:29

Oct 3 (Reuters) - Australia's Origin Energy  ORG.AX 
said on Thursday it intends to exit its potential hydrogen
development project in the A$207.6 million ($142.60 million)
Hunter Valley Hydrogen Hub (HVHH), located in New South Wales.
    The country's second-largest power producer said it also
plans to cease work on all hydrogen development opportunities,
while remaining open to exploring other commercial options for
the HVHH.
    The decision to exit the Hunter Valley Hydrogen Hub reflects
uncertainty around the pace and timing of development of the
hydrogen market, and the risks associated with developing
capital-intensive projects of this nature, Origin said in a
statement.
    "The combination of these factors mean we are unable to see
a current pathway to take a final investment decision on the
project," said Origin CEO Frank Calabria.
    Origin had announced plans for the potential hydrogen hub on
Kooragang Island in early 2022 and had entered into a joint
development agreement with Orica  ORI.AX  in July 2023 to
progress the hub. A final investment decision on HVHH was still
pending.
    The New South Wales government had given planning approval
to the HVHH project in May, with first production from the site
being targeted in 2026.


($1 = 1.4558 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Rashmi
Aich)
 ((Shivangi.Lahiri@thomsonreuters.com;))