Orica greenlights hydrogen hub in push to decarbonise ammonia and explosives operations

Origin Energy

01/07/2026 01:03

    July 1 (Reuters) - Australian commercial explosives supplier Orica ORI.AX on Wednesday approved a final investment decision to build the Hunter Valley Hydrogen Hub as the firm looks to cut its reliance on natural gas.
Here are some details:
The hydrogen hub is expected to reduce Orica's demand for natural gas feedstock by around 7.5%, the company said in a statement.
Integrated with the company's ammonia manufacturing facility in New South Wales, the hub is expected to produce 4,700 metric tons of renewable hydrogen per annum, sufficient to produce around 26,600 tons of low-carbon ammonia annually.
Construction is set to begin in 2026, Orica said, with first production targeted for early 2029.
Capital expenditure related to construction of the hub is expected to range from A$245 million to A$283 million ($169.42 million to $195.69 million), over 2026 to 2029, net of government funding, Orica added.
The project has received A$477 million in government support, backed by Climate Change and Energy Minister Chris Bowen.
Orica's Hunter Valley Hydrogen Hub, once a joint venture with Origin Energy ORG.AX, faced a major setback in October 2024 when the power producer exited, citing cost concerns and headwinds in the green hydrogen market.
     
     
($1 = 1.4461 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru; Editing by Rashmi Aich)
((Shruti.Agarwal@thomsonreuters.com;))