Orica approves $245M hydrogen project
- Orica has made a final decision to develop a commercial-scale green hydrogen production facility in the Hunter Valley.
- The company expects to spend between $245 million and $283 million on construction, excluding government support.
- The project aims to reduce carbon dioxide emissions by replacing a portion of natural gas feedstock with green hydrogen.
Orica (ASX:ORI) made a final decision to build a green hydrogen facility in the Hunter Valley costing up to $283 million.
The new facility will be integrated into an existing ammonia plant to substitute approximately 7.5% of its natural gas feedstock.
The federal government provided $70 million in capital expenditures support alongside $45 million from the New South Wales government.
Additionally, the Australian Renewable Energy Agency committed $432 million in production credits to support the facility once it becomes operational.
Following the announcement of the project, which targets first production for early 2029, the Orica share price was unchanged at $23.68.
The company stated that construction of the infrastructure is scheduled to begin in 2026 using recycled water as feedstock.
The completed 50-megawatt facility is expected to reduce carbon dioxide equivalent emissions by approximately 35,000 tonnes each year.
