The company will unveil plans to install an Australian industry first tertiary catalyst abatement technology, called EnviNOx, through its Kooragang Island Decarbonisation Project.

It is the first project to be funded from the NSW government's $750 million Net Zero Industry and Innovation Program, with $13 million coming from the state program and $24 million financed by a loan from the Federal Government's Clean Energy Finance Corporation.

Federal Minister for Industry, Energy and Emissions Reduction Angus Taylor said it will be one of the largest single abatement project to be financed by the Clean Energy Finance Corporation.

Orica said the technology uses catalytic decomposition to destroy nitrous oxide emissions. Nitrous oxide is the primary source of greenhouse emissions at the Kooragang Island facility.

The technology will be installed across all three nitric acid manufacturing plants used in the production of ammonium nitrate at Kooragang Island, and is designed to eliminate at least 567,000 tCO2e per year from the site's operations - equal to emissions from 50,000 homes.

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It is expected to reduce total emissions by 48 per cent and deliver cumulative emissions reduction of at least 4.7 million tCO2e by 2030.

Orica managing director and chief executive officer Sanjeev Gandhi said the project marked a "critical step" in achieving the company's medium-term 2030 emissions reduction targets and progress towards their net zero ambition.

"The project ensures our domestic manufacturing operations remain competitive in a low carbon economy, bringing with it significant environment and regional economic and social benefits," Mr Gandhi said.

"There are also benefits for our customers, by reducing the emissions intensity of our ammonium nitrate we are in a position to offer competitive and lower carbon-intensity ammonium nitrate products, helping them to achieve their sustainability goals.

The Kooragang Island Decarbonisation Project was approved in March 2021 by the Clean Energy Regulator to participate in Australia's carbon market.

"This is a massive abatement at one of the state's largest heavy industrial sites, which will help NSW meet its target of halving emissions by 2030," Minister for Energy and Environment Matt Kean said.

Parliamentary Secretary for the Hunter Taylor Martin said the project would improve air quality across the Newcastle region.

"One of the biggest opportunity for decarbonisation in NSW right now sits with a relatively small number of existing high emitting industries, including manufacturing right here in Newcastle," Mr Martin said.

The project is expected to start in August 2022 and take three months to complete.

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