Orica Kooragang Island Decarbonisation Project

The Orica Kooragang Island Decarbonisation Project is an industrial emissions reduction project located on Kooragang Island, situated within the Port of Newcastle precinct, approximately 10km north of the Newcastle CBD in New South Wales. Registered on March 19, 2021, the project operates under the Carbon Credits (Carbon Farming Initiative, Facilities) Methodology Determination 2015.

The Facilities methodology is designed for large industrial facilities that report under the National Greenhouse and Energy Reporting (NGER) scheme. It allows these facilities to earn Australian Carbon Credit Units (ACCUs) by implementing changes that reduce emissions intensity or absolute emissions below a calculated baseline. This specific project targets industrial process emissions, focusing on the abatement of nitrous oxide (N2O), a potent greenhouse gas, generated as a byproduct during the manufacture of nitric acid. To achieve this, Orica has installed tertiary catalyst abatement technology, known as EnviNOx, across its three nitric acid plants. This technology works by decomposing nitrous oxide into naturally occurring nitrogen and oxygen before it is released into the atmosphere.

Environmentally, Kooragang Island is a reclaimed landmass located in the Hunter River estuary. The area is characterized by alluvial and sandy soils typical of delta formations, often modified by historical dredging and filling operations. The region experiences a coastal climate with high rainfall, averaging around 1100mm annually. However, the immediate land use is heavily industrial, hosting major coal export terminals and chemical manufacturing facilities, distinguishing it from the agricultural land uses typical of other carbon projects.

A significant aspect of this project is that it marks the first deployment of this specific tertiary abatement technology in Australia. It is a flagship decarbonization initiative for the heavy industry sector, expected to reduce the facility's total greenhouse gas emissions by approximately 48%, which equates to an abatement of over 567,000 tonnes of CO2 equivalent per year. The project has also received financial backing from the Clean Energy Finance Corporation (CEFC).