Orica said Wednesday that it will proceed with the development of the Hunter Valley Hydrogen Hub, a commercial-scale renewable hydrogen facility integrated with its ammonia manufacturing at Kooragang Island in New South Wales.
The Australian explosives and chemicals company said construction is scheduled to begin in 2026, with first production targeted for early 2029.
The facility is expected to produce about 4,700 metric tons of renewable hydrogen annually using recycled water and renewable electricity.
The hydrogen will be used to manufacture about 26,600 metric tons of low-carbon ammonia per year, reducing Orica's natural gas feedstock demand by nearly 7.5%.
Capital expenditures for the facility are expected at between A$245 million and A$283 million from 2026 through 2029, which are in addition to government funding.
The project is supported by the Australian and New South Wales governments, along with the Australian Renewable Energy Agency.