Overview

• The federal government has allocated $432 million through its Hydrogen Headstart program to subsidise Orica’s 50 MW electrolyser at the Hunter Valley’s Kooragang Island site with operations slated for 2028.
• The electrolyser is expected to generate about 4,700 tonnes of green hydrogen a year to decarbonise Orica’s ammonia production and support regional low-carbon jobs.
• This funding complements a broader $2 billion grant scheme administered by ARENA designed to build scale and drive down costs across Australia’s green hydrogen industry.
• The announcement follows the Queensland government’s withdrawal from the $14 billion Central Queensland Hydrogen Project and Origin Energy’s exit from Newcastle hub plans.
• Industry experts caution that high upfront capital requirements and technological challenges remain significant barriers to meeting export ambitions in markets such as Japan and South Korea.