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Orica Yarwun Manufacturing Facility

Orica has announced a strategic partnership with H2U Group to initiate the first phase of its proposed H2-Hub Gladstone project in Queensland.

Signing a memorandum of understanding (MoU) on a master plan study, both parties will explore opportunities for an exclusive domestic green ammonia offtake and supply agreement.

The potential agreement would see green ammonia supplied directly to Orica’s Yarwun manufacturing plant from H2U’s proposed Yarwun green ammonia production plant.

Green ammonia has been identified as one of the key alternatives to fossil fuels in the pathway to manufacturing green metals, primarily green steel.

Orica and H2U will also collaborate on the exploration of a potential green ammonia export terminal at the Port of Gladstone, leveraging the existing Orica ammonia storage capacity at the Fisherman’s Landing Wharf and the associated connecting infrastructure in the Gladstone State Development Area to facilitate large scale exports.

“We’ve been operating in Yarwun for over 30 years and are committed to ensuring our Yarwun facility and the Gladstone region remain competitive in a lower carbon economy while creating more sustainable products for customers and opportunities across new industries,” Orica Australia Pacific president Germán Morales said.

“This partnership forms a critical milestone for the H2-Hub Gladstone project, and we look forward to working alongside H2U to define opportunities to progress the project and contribute to a more sustainable future for the region.”

With the potential to create over 550 jobs during construction, over 140 ongoing local operational jobs and approximately 1900 indirect jobs, and attract a $4.7 billion investment during its phased construction, the project would support a steady transition to renewable energy in Central Queensland.

It will also provide the region with the opportunity to capitalise on the developing global green ammonia industry, which is forecast to exceed $50 billion by 2030.

H2U founder and chief executive officer Attilio Pigneri said the company is delighted to welcome Orica as a strategic offtake and development partner in the H2-Hub Gladstone project.

“Securing participation from one of the leading players in the domestic ammonia industry is a huge vote of confidence in this game-changing project,” Pigneri said.

“We look forward to working with Orica, the Port of Gladstone, and the Queensland Government to establish Gladstone as a globally leading hub in the emerging green hydrogen and green ammonia export market, and to secure new long-term jobs and economic growth for Central Queensland.”