Life has been breathed back into Australia’s green hydrogen dreams, with the first project funded under the federal government’s 2023 Hydrogen Headstart program revealing that it is ready to start being built this year.
ASX-listed explosives and chemicals business Orica has reached final investment decision on its Hunter Valley Hydrogen Hub, a milestone amidst an industry that has so far been littered with disappointments.
The project received $432 million in grant funding from the Australian Renewable Energy Agency (ARENA) in 2025.
Green hydrogen was one of the new federal Labor government’s big ideas in 2023, when it set up the $2 billion Hydrogen Headstart fund which offered a decade of production credits to bridge the gap between making green hydrogen and what the market is willing to pay.
But with only two projects funded, Orica’s in-house ammonia project and $812 million for Copenhagen Infrastructure Partners’ 1,500 megawatt (MW) Murchison project in Western Australia, the federal government cut the original budget in half.
