Origin Energy quits hydrogen
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The news: Origin Energy has announced its intention to cease all work on hydrogen development opportunities due to technological uncertainties and costs.
The context: Origin said this included exiting its potential Hunter Valley Hydrogen Hub (HVHH) development project.
The decision, they said, was due to the uncertainty around the pace and timing of development of the hydrogen market, along with the risks related to developing capital-intensive projects.
Its chief executive Frank Calabria said investments focussed on renewables and storage were best-placed to support the decarbonisation of energy supply and underpin energy security over the near term.
The HVHH project was being developed in conjunction with Orica, which announced plans for a potential hydrogen hub on Kooragang Island in 2022.
Origin entered into a joint development agreement with Orica in July 2023 to progress through front-end engineering and design, had received NSW government planning approval and was targeting a final investment decision.
What they said: “We continue to believe hydrogen could play a role in the future energy mix. However, it has become clear that the hydrogen market is developing more slowly than anticipated, and there remain risks and both input cost and technology advancements to overcome,” Calabria said.
“The combination of these factors mean we are unable to see a current pathway to take a final investment decision on the project."
The source: Origin media release
