July 2026
On 1 July 2026, Orica announced a final investment decision on its Hunter Valley Hydrogen Hub, a renewable hydrogen production facility next to its existing ammonia and ammonium nitrate plant on Kooragang Island in Newcastle.
The project includes a 50 MW electrolyser, a hydrogen supply pipeline and a recycled water connection. Once running, it is expected to produce around 4,700 tonnes of hydrogen a year. That hydrogen will replace part of the natural gas Orica currently uses as feedstock for ammonia manufacturing.
Orica expects to invest between $245 million and $283 million over 2026 to 2029. The project is also supported by $70 million from the Australian Government's Regional Hydrogen Hubs Program, $45 million from the NSW Government's Hydrogen Hubs Initiative, and up to $432 million in production credits through ARENA's Hydrogen Headstart Program once it is operating. Duratec has been appointed as construction partner, and commissioning is targeted for 2029.
According to Orica, the build will support up to 160 construction jobs and around $75 million in local and regional spending during design and construction.
For the Hunter, the project matters beyond its size. Unlike many hydrogen proposals aimed at export, this one plugs straight into an existing industrial operation with a known customer. It is a clear example of established manufacturers upgrading their sites rather than relocating, and a sign of continued investment in the region's heavy industry.