By Dean Seal

Plug Power has secured a contract from Orica to supply equipment that will power what will be the largest renewable hydrogen project in Australia.

Orica's Hunter Valley Hydrogen Hub project in Newcastle has reached final investment decision and thus will move into the construction phase, advancing the delivery of Plug's GenEco Proton Exchange Membrane electrolyzers, Plug said on Tuesday.

The Hunter Valley project, located next to Orica's existing ammonia manufacturing facility on Kooragang Island, will use renewable electricity to produce renewable hydrogen via electrolysis and start replacing natural gas in Orica's production of low-carbon ammonia and ammonium nitrate.

Once at full capacity, the facility is set to produce about 4,700 tonnes of renewable hydrogen each year and displace around 7.5% of Orica's natural gas consumption on Kooragang Island, Plug said.

Financial terms of the contract weren't disclosed.

Write to Dean Seal at dean.seal@wsj.com