Orica set to eliminate nearly 50% of GHG emissions at Hunter site

Orica has announced the completion of its Kooragang Island Decarbonisation Project in Newcastle, with the successful commissioning of an “Australian-first” technology across its three nitric acid manufacturing plants onsite.

A major step in Orica’s journey to decarbonise its operations, the fully operational tertiary abatement technology has reduced greenhouse gas (GHG) emissions released by Orica’s three nitric acid plants by at least 98%, according to the company.

This is equivalent to 48% of the site’s total GHG emissions and 11% of all chemical industry process emissions across Australia. This project will continue to eliminate 567,000 tonnes of carbon dioxide equivalent from the site each year.

To facilitate the project, the New South Wales Government’s Net Zero Industry and Innovation Program co-invested $13.06 million, together with Orica’s $25 million financed by the federal government’s Clean Energy Finance Corporation. The Clean Energy Regulator also approved the project as eligible to generate Australian Carbon Credit Units.

“This project clearly demonstrates that with the right policy settings and corporate commitments, emissions reduction is possible in hard-to-abate industries of our economy,” said Orica Managing Director and Chief Executive Officer Sanjeev Gandhi. “The policy certainty from the passage of the government’s safeguard reforms means we can now continue to accelerate our decarbonisation plans with confidence. We will continue to invest across our operations, to ensure Australian manufactured products remain competitive as the world transitions to a lower carbon economy. Our focus now moves to decarbonising our operations at Yarwun in Queensland utilising the same proven technology.”

“The government is proud to be working in partnership with companies like Orica as they use innovative technology to reduce their emissions,” said Minister for Climate Change and Energy Chris Bowen. “This is exactly the type of innovation that our safeguard reforms incentivise, helping industrial emitters reduce their emissions while staying competitive.

“We congratulate Orica on investing in technology that helps protect job security for the over 250 employees at the Kooragang Island facility — ensuring they remain competitive in a decarbonising global economy.”

Committed to accelerating progress towards its 2050 net zero ambition, Orica said it has turned its attention to tackling the remaining material greenhouse gas emissions onsite — an initiative that will require a low carbon alternative feedstock for ammonia manufacturing. This feedstock will likely come in the form of renewable hydrogen, to replace the natural gas feedstock used today. By replacing natural gas with renewable hydrogen, Orica intends to free up domestic gas supply for Australian households.

Working with Origin Energy on the Hunter Valley Hydrogen Hub (HVHH) to deliver a commercial-scale renewable hydrogen supply chain in the Newcastle industrial and port zone, phase one of the project will produce renewable hydrogen from recycled water and renewable electricity using a grid-connected 55 MW electrolyser.

Hydrogen manufactured at the facility will be piped to Orica’s manufacturing site where it will be used to replace natural gas in the production of green ammonia and ammonium nitrate.

Image caption: Kooragang Island, Newcastle.