The head of Orica Australia says the company remains committed to the development of the Hunter' hydrogen sector as part of Australia' clean energy transformation.
Managing director Sanjeev Gandhi also said Orica was open to working with new partners on the $207 million Hunter Hydrogen Hub following Origin Energy's shock departure from the project.
Origin cited uncertainty around the pace and timing of the hydrogen market's development and the risks associated with developing capital-intensive hydrogen projects, among the reasons for walking away from the project earlier this month.
Despite that, the project remains a key part of Orica's plans to manufacture green ammonia at its neighbouring Kooragang Island plant. In addition to helping the company achieve its 2030 net zero targets, green ammonia is tipped to become a key export commodity in coming years.
"We believe the hydrogen project in the Hunter Valley has significant merit with the competitive advantages of a strategic location on the Port of Newcastle and an established end market in the resources industry," Mr Gandhi said.
"Orica's Kooragang Island ammonia plant is also the only ammonia plant operating on Australia's east coast with direct access to a deep-water port and the Port of Newcastle's Clean Energy Precinct.
"We remain committed to exploring new opportunities in this promising sector and remain open to discussions with interested parties who share our vision for a sustainable energy future and Australia's hydrogen economy."
In another sign of confidence in the Hunter's hydrogen sector, agreements have been signed for front end engineering designs and environmental impact statements for the Port of Newcastle's clean energy precinct on Kooragang Island.
The agreements, which cover electrical infrastructure, water services, general infrastructure, storage, berth infrastructure, and pipelines to berth, are funded as part of the Commonwealth Government's $100 million hydrogen readiness grant.
"Today is a significant step forward for the Hunter Region. The Clean Energy Precinct is central to the Port of Newcastle's diversification strategy to create the Port that our community, our region, and our state needs for the future," port chief executive Craig Carmody said on Monday.
"This phase will determine the infrastructure and services critical to the progression of the Precinct's development and push us further towards hydrogen readiness."
Once fully developed, the clean energy precinct will contribute $4.2 billion and is estimated to generate 5,800 new jobs to the Hunter Region by 2040.
It will also supporting the NSW Government's objectives to accelerate decarbonisation and clean energy opportunities by increasing renewable energy generation, storage, and investment under the Electricity Infrastructure Roadmap.
The clean energy precinct will enable the production, storage, distribution and export of clean energy such as green hydrogen and green ammonia. Fully constructed, the project will facilitate clean energy production, storage, transmission, domestic distribution, and international export.
Federal Newcastle MP Sharon Claydon said the precinct was a major boost for the region.
"Newcastle and the Hunter have powered Australia for Generations. This project makes sure we will continue to do so for generations to come as we lead the transition to Net Zero. Establishing the Port as a hydrogen exporter will ensure good local jobs are protected and created into the future." she said.
Minister for the Hunter, Yasmin Catley the project would play a key role in transforming the state's energy market.
"This project will support almost 6,000 local jobs and add billions to the regional economy. Today's announcement will help ensure a bright future for the Hunter," she said.
