Orica (ASX:ORI) has given the final go ahead for a commercial scale green hydrogen facility in the Hunter Valley, New South Wales. The project will cost between $245 million and $283 million to build, with an additional $70 million from the federal government and $45 million from the NSW government. The Australian Renewable Energy Agency also committed $432 million in production credits once the plant is operational. The facility will replace about 7.5% of the natural gas feedstock at an existing ammonia plant, aiming to cut CO2 equivalent emissions by roughly 35,000 tonnes per year. Construction is set to start in 2026, with first production targeted for early 2029. The 50 MW electrolysis plant will use recycled water and is designed to produce green hydrogen at commercial scale. Orica expects total construction costs between $245 million and $283 million before government support. The project is a concrete example of industrial decarbonization in Australia, combining federal and state subsidies with production linked credits from ARENA. It shows how established industrial sites can phase in green hydrogen without full replacement of existing infrastructure.
