Latest news with #Orica
Daily Mail
08-07-2025
- Business
- Daily Mail
Australia's biggest green hydrogen project just imploded - so Labor is betting $430million of YOUR money to roll the dice on another one
A major green hydrogen project has secured federal backing just days after the biggest proposal in the country to produce the clean fuel spectacularly collapsed. The Commonwealth financial support for the Hunter Valley facility will allow it to make the switch from hydrogen made with gas, a fossil fuel, to renewable energy. Funding of $432million for the Orica facility was allocated under the federal government's Hydrogen Headstart program, which provides credits for the manufacture of the clean fuel. The $2billion grant program, delivered by the Australian Renewable Energy Agency, aims to build scale across green hydrogen production and so drive down costs over time. The Albanese government wants Australia to become a global leader in green hydrogen to power heavy industry and long-haul trucks, and to produce green metals such as iron - key to meeting global emissions targets and tackling climate change. But the fledgling sector has struggled to find its feet. The biggest proposal in the nation, Gladstone's $14billion Central Queensland Hydrogen Project (CQ-H2), was officially scrapped last week after private companies backed away and the state government then withdrew its support. Federal Energy Minister Chris Bowen acknowledged the headwinds faced by the renewable hydrogen industry but said his government was rising to the challenge. Federal Energy Minister Chris Bowen announced an Orica facility near Newcastle will get $430million in taxpayer funding and that it will be difficult for the government to pull off 'It's in the hard basket, not the too hard basket,' he told reporters on Friday. The failed Gladstone project was a disappointment, Mr Bowen said, pointing a finger at the Queensland government rather than private sector investors. The CQ-H2 project was the largest hydrogen development by electrolyser capacity in Australia that was in the front-end engineering phase. It was partially funded with $20million from the federal government and another $15million from the Queensland state government. The Queensland government-owned Stanwell Corporation withdrew from the project after the Japanese companies Kansai Electric Power and Iwatani pulled out. Queensland Treasurer David Janetzki described the Gladstone project as 'speculative in nature' and said he 'didn't want to see the precious taxpayer dollar tipped into it'. The federal incentives for the Hunter Valley project will go towards a 50MW electrolyser powered by renewable energy on the Kooragang Island site, capable of producing about 4700 tonnes of green hydrogen each year to support regional jobs in low-carbon industries. Hydrogen is used to make ammonia, important in fertiliser production, so the shift to a clean fuel will allow Orica to cut emissions from its ammonia facilities. It will also open the region to opportunities to export clean hydrogen and ammonia. Clean Energy Council general manager of advocacy and investment Anna Freeman applauded the government's commitment to getting 'complex and challenging' renewable hydrogen projects off the ground. 'We urgently need to drive down the cost of this renewable fuel to support Australia's decarbonisation plans,' Ms Freeman said.
Sky News AU
04-07-2025
- Business
- Sky News AU
Labor kicking off Hydrogen Headstart Program by investing $432 million into project
The Labor Party is putting $432 million of public funds into Orica to shift from natural gas to green hydrogen. This is the second project backed under the Albanese government's Hydrogen Headstart Program, which is designed to help the emerging industry get off the ground. Cleaning up emission-intensive industries is an essential step in meeting Australia's climate targets. Australia can produce a few hundred tons of clean hydrogen every year, while Labor has set a target of 15 million tons annually by 2050.
ABC News
04-07-2025
- Business
- ABC News
Federal government commits $430 million to prop up Newcastle hydrogen hub
The federal government has committed more than $430 million to help bring large-scale hydrogen production to the New South Wales Hunter region despite uncertainty in the market. Climate Change and Energy Minister Chris Bowen made the funding announcement on Friday. The proposed hub would include a 50-megawatt hydrogen electrolyser to be constructed at Kooragang Island, near the Port of Newcastle, which would split water into hydrogen and oxygen. That could produce 4,700 tonnes of green hydrogen each year, much of which would be used by explosive manufacturing company Orica at its nearby site to help make its products emission-free. "Green hydrogen does have a future in Australia," Mr Bowen said. The announcement comes months after Origin Energy pulled out of the project citing high input costs and challenges regarding technological advancement. The project was to be delivered by Origin Energy in partnership with Orica and in 2023 the government awarded the joint venture $70m to help with construction costs. Orica managing director and chief executive officer Sanjeev Gandhi said the company remained committed to the project and was gauging interest from potential partners for the venture. "We will continue to invest in this site," he said. Mr Gandhi said the funding announced on Friday was an incentive to deliver the project. "It's not easy to build these kind of projects," he said. "We will need a lot of support from the local authorities, from the state government, from the federal government and, obviously, from the Orica workforce." The ABC understands the the funding will be used to subsidise every tonne of hydrogen produced from the facility. Mr Bowen's announcement comes days after the Central Queensland Hydrogen Project (CQH2) was scrapped. State-government owned energy company Stanwell withdrew its support for Gladstone project on Monday. Earlier this year the Queensland government withdrew its funding for the project on the grounds that the financial demands were too high. In May billionaire Andrew Forrest's company Fortescue abandoned both stages of its hydrogen projects in the city. Energy consultant Geoff Bongers told ABC Newcastle that the cost of production was the major barrier. "There's a gap between what [industry] would like to do and what's available and economic," he said. "Electrolysis is a relatively expensive capital project, so the the capital cost is reasonably high and the ongoing costs are relatively high. But Dr Bongers said there was "relatively high" demand for hydrogen. "[Japan and South Korea] have both expressed interest in using hydrogen as a fuel source," he said. "Japan would be keen to take as much hydrogen as we could produce, almost." Orica said it planned to scale the project in accordance with demand would consider exporting in the future. The hydrogen hub was originally set to be built in 2025 and was to be operational by 2026. It is now projected to be operational in 2028.
West Australian
04-07-2025
- Business
- West Australian
Green hydrogen powers back up with major funding
A major green hydrogen project has secured federal backing days after one of the biggest proposals to produce the clean fuel fell over. The Commonwealth financial support for the Hunter Valley facility will allow it to make the switch from hydrogen made with gas, a fossil fuel, to renewable energy. Funding of $432 million for the Orica facility was allocated under the federal government's Hydrogen Headstart program, which provides credits for the manufacture of the clean fuel. The $2 billion grant program, delivered by the Australian Renewable Energy Agency, aims to build scale across green hydrogen production and so drive down costs over time. Australia wants to become a global leader in green hydrogen to power heavy industry and long-haul trucks, and to produce green metals such as iron - all key to meeting global decarbonisation targets and tackling climate change. But the fledgling sector has struggled to find its feet. One of the biggest proposals in the nation, Gladstone's $14 billion Central Queensland Hydrogen Project (CQ-H2), was officially scrapped this week after the state government withdrew its support. Federal Energy Minister Chris Bowen acknowledged the headwinds faced by the renewable hydrogen industry but said his government was rising to the challenge. "It's in the hard basket, not the too hard basket," he told reporters on Friday. The failed Gladstone project was a disappointment, Mr Bowen said, pointing a finger at the Queensland government rather than private sector investors. Queensland Treasurer David Janetzki has described the Gladstone project as "speculative in nature" and said he "didn't want to see the precious taxpayer dollar tipped into it". The federal incentives for the Hunter Valley project will go towards a 50 MW electrolyser powered by renewable energy on the Kooragang Island site, capable of producing about 4700 tonnes of green hydrogen each year to support regional jobs in low-carbon industries. Hydrogen is used to make ammonia, important in fertiliser production, so the shift to a clean fuel will allow Orica to cut emissions from its ammonia facilities. It will also open the region to opportunities to export clean hydrogen and ammonia. Clean Energy Council general manager of advocacy and investment Anna Freeman applauded the government's commitment to getting "complex and challenging" renewable hydrogen projects off the ground. "We urgently need to drive down the cost of this renewable fuel to support Australia's decarbonisation plans," Ms Freeman said.
Perth Now
04-07-2025
- Business
- Perth Now
Green hydrogen powers back up with major funding
A major green hydrogen project has secured federal backing days after one of the biggest proposals to produce the clean fuel fell over. The Commonwealth financial support for the Hunter Valley facility will allow it to make the switch from hydrogen made with gas, a fossil fuel, to renewable energy. Funding of $432 million for the Orica facility was allocated under the federal government's Hydrogen Headstart program, which provides credits for the manufacture of the clean fuel. The $2 billion grant program, delivered by the Australian Renewable Energy Agency, aims to build scale across green hydrogen production and so drive down costs over time. Australia wants to become a global leader in green hydrogen to power heavy industry and long-haul trucks, and to produce green metals such as iron - all key to meeting global decarbonisation targets and tackling climate change. But the fledgling sector has struggled to find its feet. One of the biggest proposals in the nation, Gladstone's $14 billion Central Queensland Hydrogen Project (CQ-H2), was officially scrapped this week after the state government withdrew its support. Federal Energy Minister Chris Bowen acknowledged the headwinds faced by the renewable hydrogen industry but said his government was rising to the challenge. "It's in the hard basket, not the too hard basket," he told reporters on Friday. The failed Gladstone project was a disappointment, Mr Bowen said, pointing a finger at the Queensland government rather than private sector investors. Queensland Treasurer David Janetzki has described the Gladstone project as "speculative in nature" and said he "didn't want to see the precious taxpayer dollar tipped into it". The federal incentives for the Hunter Valley project will go towards a 50 MW electrolyser powered by renewable energy on the Kooragang Island site, capable of producing about 4700 tonnes of green hydrogen each year to support regional jobs in low-carbon industries. Hydrogen is used to make ammonia, important in fertiliser production, so the shift to a clean fuel will allow Orica to cut emissions from its ammonia facilities. It will also open the region to opportunities to export clean hydrogen and ammonia. Clean Energy Council general manager of advocacy and investment Anna Freeman applauded the government's commitment to getting "complex and challenging" renewable hydrogen projects off the ground. "We urgently need to drive down the cost of this renewable fuel to support Australia's decarbonisation plans," Ms Freeman said.
