Green ammonia could be the key to the Hunter's hydrogen economy

Going green: Green ammonia production using hydrogen is likely to spearhead the Hunter's hydrogen economy.

The Hunter's existing export supply chain through the Port of Newcastle provides the ideal scaffold for the creation of a hydrogen economy, a new government-commissioned report has found.

And Orica's Kooragang Island facility could spearhead the emerging hydrogen industry through green ammonia exports.

Green ammonia is produced with hydrogen that comes from water electrolysis as opposed to natural gas.

Japan, which is developing plans to co-fire its power stations with ammonia, has been identified as a potential major customer for Orica.

"The Hunter region provides the ideal backbone for Orica and other industry stakeholders to mobilise a new value creation business through the development of a 'green ammonia' export network," the State Government-commissioned NSW P2X Industry Pre-Feasibility Study says.

"Japan would be the ideal first customer to consume 'green ammonia', due to their forecasted ammonia demands in their 'Japanese Hydrogen Roadmap'.

An Orica spokeswoman said the company welcomed the report's analysis.

"This report aligns with Orica's recently announced ambition to reach net zero emissions by 2050," she said.

"We look forward to the opportunity to work with the government and other stakeholders in achieving our own and the state's decarbonisation goals."

"Orica is closely observing the progress of both green hydrogen and green ammonia technologies, and exploring the opportunities they present."

The state government committed $70 million in March towards the establishment of green hydrogen hubs in the Hunter and Illawarra as part of the Net Zero Industry and Innovation Program.

The pre-feasibility follows on from the recently released NSW hydrogen strategy.

Treasurer and Minister for Energy and Environment Matt Kean said the study reaffirmed NSW's ambition to set the state up as a global hydrogen leader.

"P2X will not only help NSW in getting to net zero in 2050 and halving its emissions by 2030, it will create new opportunities for our heavy industry and make our state a global renewable powerhouse." Mr Kean said.

NSW Chief Scientist & Engineer Professor Hugh Durrant-Whyte said P2X will unlock the next wave of clean technology development opportunities for NSW.

"With many states in Australia and countries around the world now joining the hydrogen race, NSW is thinking beyond the hydrogen economy and aims to take the first-mover advantage to build our capabilities and industries in P2X," Professor Durrant-Whyte said this week.