The Australian Renewable Energy Agency (ARENA) has awarded up to AUD 432 million in grant funding to Orica’s Hunter Valley hydrogen hub. The hydrogen hub will receive the funding as the second recipient of ARENA’s Hydrogen Headstart Program. The hub will produce renewable hydrogen using a 50 MW electrolyser powered by renewable electricity.

Furthermore, the hydrogen produced will replace natural gas in Orica’s ammonia production process and help reduce carbon emissions. The project also marks a significant step in decarbonising Orica’s existing Kooragang Island ammonia manufacturing facility. Additionally, funding under ARENA’s Hydrogen Headstart Program is paid based on actual production volumes over a 10 year operating period.

Earlier in March 2025, ARENA announced the first recipient from its Hydrogen Headstart Program. An amount of AUD 814 million in funding was allocated under round 1 to Copenhagen Infrastructure Partners’ 1,500 MW Murchison green hydrogen project. The project is situated in Western Australia.