The federal government has struck its first major agreement to back a regional hydrogen hub.
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Energy Minister Chris Bowen said $70 million would be invested to develop a hydrogen hub in the NSW city of Newcastle, with the facility expected to start operating in 2026.
Origin Energy in collaboration with Orica is developing the Hunter Valley hydrogen hub, which will support around 100 jobs.
It is expected to produce up to 5500 tonnes of renewable hydrogen each year, which will be used by the Orica ammonia and ammonium nitrate facility and to refuel hydrogen buses and trucks.
Mr Bowen said the Port of Newcastle was an ideal location for the facility, which would support decarbonisation of heavy industry in the region and connect Australia's renewable resources to overseas buyers.
"This project is the next step towards using locally produced renewable hydrogen in Australia to reduce our industrial emissions and develop a renewable export future," he said.
Australian Associated Press
