Origin Energy has decided to exit the Hunter Valley Hydrogen Hub (HVHH) project in New South Wales due to slower-than-expected hydrogen market development. CEO Frank Calabria explained that while hydrogen has potential in the future energy mix, current market challenges, including input costs and technology advancements, are hindering progress.
The HVHH, announced in 2022 in partnership with Orica, was designed to replace natural gas with hydrogen in ammonia production and provide cleaner transport fuel. Despite government support and grant funding, Origin has paused all hydrogen development efforts, shifting its focus towards investments in renewables and energy storage for near-term decarbonization and energy security.