Origin Energy, Australia's hydrogen hub, plans to leave the Hunter Valley

Origin Energy, Australia's largest energy company, announced on Thursday that it will abandon its potential development project for the Hunter Valley Hydrogen Hub in New South Wales. The project is estimated to cost A$207.6 millions ($142.60 Million).

The second largest power producer in the country said that it will also cease all work on hydrogen development, but remains open to exploring commercial options for HVHH.

Origin stated that the decision to leave the Hunter Valley Hydrogen hub reflects the uncertainty surrounding the timing and pace of development of hydrogen markets, as well as the risks involved in developing capital-intensive projects.

The CEO of Origin, Frank Calabria, said: "The combination these factors means we cannot see a path to make a final decision about the project at this time."

Origin announced its plans for a potential hydrogen hub at Kooragang Island early in 2022. In July 2023, Orica and Origin entered into a joint-development agreement to advance the hub. The final investment decision for HVHH is still pending.

The New South Wales Government had approved the HVHH Project in May. First production is expected to begin in 2026. ($1 = 1.4558 Australian dollars) (Reporting by Shivangi Lahiri in Bengaluru; Editing by Rashmi Aich)

(source: Reuters)