First presented in 2022, the hub was as soon as powered by a mixture of grid-linked electricity, local photo voltaic PV vitality vegetation, and wind farms. It was as soon as to be developed on Koorgang Island, north of Newcastle, New South Wales.
Origin hoped hydrogen would progressively change pure gasoline as a feedstock in nearby ammonia manufacturing and be historical for mobility. In July 2023, Origin and Orica entered a joint pattern agreement to advance thru entrance-discontinue engineering and fabricate.
The utility received planning approval from the New South Wales authorities in Might maybe also simply 2024 and aimed to fabricate a closing investment resolution soon. The venture received federal recognition by being shortlisted below the Australian authorities’s Hydrogen Headstart program and previously received commitments for grant funding from the Commonwealth and New South Wales.
Origin Energy added that it remains start to exploring industrial alternatives for the Hunter Valley Hydrogen Hub however at the moment intends to quit work on all hydrogen pattern opportunities.
Despite the company pulling out of the hydrogen market, Origin Energy’s CEO Frank Calabria aloof believes hydrogen might perhaps almost definitely maybe play a role sooner or later energy mix however admitted the market is rising slower than anticipated.
“It has change into definite that the hydrogen market is rising extra slowly than anticipated, and there stay risks and both input fee and know-how advancements to beat. The mix of these factors imply we are unable to perceive a present pathway to rob a closing investment resolution on the venture,” Calabria stated.
“Within the raze, we accept as true with investments focussed on renewable energy and storage can handiest fortify the decarbonisation of energy provide and underpin energy security over the come-timeframe.”
Origin’s shift away from hydrogen any other blow to Australia’s ambitions
Origin Energy’s pass to exit the hydrogen market comes as yet any other blow to Australia’s just to alter into a hydrogen superpower. Final month, Australian mineral exploration company Province Resources shelved a multi-gigawatt photo voltaic and wind-powered inexperienced hydrogen venture in Western Australia known as HyEnergy.
As reported by PV Tech, Province had shelved the venture because of the an absence of governmental fortify, declaring that the authorities had “failed to offer tenure for the venture on phrases which would be acceptable to Province and doable venture companions, or in the handiest interests of the company’s shareholders”.
With the hydrogen market aloof in its infancy and its pattern no longer scaling as rapid as anticipated, predominant investment will be required to assist the market fetch on its feet.
This doesn’t, on the opposite hand, imply this might perhaps no longer play a role sooner or later energy mix. Australia is aloof attempting to stimulate investment by the narrate of its newly updated Nationwide Hydrogen Strategy, which placed photo voltaic PV at the coronary heart of inexperienced hydrogen production. Origin might perhaps almost definitely maybe play a really crucial role in producing inexperienced hydrogen by scaling the specified renewable energy know-how resources to draw electrolysers.
Origin’s photo voltaic PV and energy storage ambitions
Origin continues to development in its photo voltaic PV venture pipeline. The very best possible within right here’s the Yarrabee Checklist voltaic Farm, located in New South Wales. Its first stage has an anticipated know-how skill of 450MW and the aptitude of up to 900MW. Planning approval also enables for a 25MW BESS.
Origin will seemingly be rising the 450MW Salisbury venture, based fully in New South Wales. The corporate added this venture to its portfolio by the narrate of its acquisition of Walcha Energy in February 2024, allocating a extra 1.3GW to its renewable energy pipeline.
As previously reported by PV Tech, Origin Energy stated it’s dedicated to rising its photo voltaic PV pipeline and is for the time being a “number of doable photo voltaic farm pattern projects” totalling around 1,600MW.
In August, the company stated it will most likely almost definitely maybe proceed to show screen the timing of doable transmission network traits and upgrades required to fortify the projects.
This came as Origin cancelled the advance of its 130MW Morgan and 74MW Carisbrook photo voltaic PV projects because of the “adverse stipulations”. In step with the company, the projects’ pattern was as soon as impaired due to it was as soon as regarded as “no longer going that they are able to produce a upright return on investment”.
Readers of PV Tech will in discovering in tips that Origin Energy also has a heavy impression in the Australian energy storage market with tons of utility-scale proposals.
One such proposal, the Eraring battery energy storage venture in New South Wales, no longer too long prior to now saw its 2d stage pattern accredited, as reported by our sister space Energy-Storage.news.
