Origin Energy has announced it will no longer proceed with its involvement in the $207.6 million hydrogen hub at Kooragang Island, citing the project’s high level of risk. This comes shortly after the NSW Government’s high-profile approval of the project, which was seen as a major step forward for the state’s renewable energy sector.
The hydrogen hub, initially expected to begin construction in mid-2025, aimed to deliver around 55 megawatts of electrolyser capacity by 2026, with a vision to scale up to over 1 gigawatt of capacity in the next decade. The project had garnered significant public and government support, promising to decarbonize Orica’s ammonium nitrate manufacturing facility and establish a commercial-scale green hydrogen supply chain for the Hunter Region and beyond. It was also expected to create 160 construction jobs and 10 permanent roles while reducing greenhouse gas emissions by more than 52,000 tonnes annually.
However, Origin Energy’s decision to pull out raises serious questions about the project’s future. While no specific details were provided on what the company found to be too risky, it highlights ongoing concerns about the financial and operational challenges tied to large-scale renewable energy projects in Australia. The move will also likely trigger scrutiny on how NSW and federal governments handle future green energy ventures, as significant public funds had already been pledged to support this hydrogen hub.
Government officials had lauded the hydrogen hub as a game-changer for the Hunter, positioning the region to once again be a manufacturing powerhouse and a leader in green energy. Now, the project faces an uncertain path, and it remains to be seen if other investors will step in to fill the void left by Origin Energy.
This development could also impact local job expectations and further delay the Hunter’s ambitions to lead Australia in the transition to renewable energy. Despite government assurances of commitment to net zero and job creation, the collapse of such a high-profile project raises doubts about the viability of other renewable energy projects in the region.