Orica slashes emissions with world-leading tech
Kooragang Island Decarbonisation Project delivers major sustainability outcomes
A pioneering CEFC investment in the manufacturing sector demonstrated how chemical industry process emissions could be dramatically reduced with internationally proven technology.
$25m
investment
~98%
emissions reduction
Australian
industry first
Our investment
A $25 million CEFC investment commitment in 2021 helped deliver a landmark emissions reduction project for Orica, the world’s largest provider of commercial explosives and blasting systems to the mining and infrastructure sectors.
The Orica Kooragang Island Decarbonisation Project in NSW, which officially opened in July 2023, involved an Australian-first deployment of tertiary abatement technology for three nitric acid plants. It was the first major direct investment for the CEFC in the manufacturing sector and one of the largest single emissions abatement projects the CEFC has financed.
The technology reduced greenhouse gas emissions from the nitric acid plants by at least 98 per cent. This represented a reduction equivalent to 48 per cent of the Kooragang site’s total emissions and 11 per cent of all chemical industry process emissions in Australia, based on figures sourced in 2021.
Strategically located at the entrance to the Hunter Valley, Kooragang Island supplies critical products to the mining and infrastructure, agriculture, water supply, food, dairy and medical sectors. It is also a significant employer in the Newcastle area, with approximately 210 permanent employees and around 40 regular contractors.
The facility includes an ammonia plant, three nitric acid plants, two ammonium nitrate plants and a product dispatch facility.
To facilitate the Kooragang Island Decarbonisation Project, the New South Wales Government Net Zero Industry and Innovation Program co-invested $13.06 million. The Clean Energy Regulator approved the project as eligible to generate Australian Carbon Credit Units.
CEFC finance was fully repaid in October 2026.
REPAID: October 2026
our impact
The challenge for hard-to-abate sectors
The pathway to lower emissions in manufacturing has proved challenging. A lack of technology solutions, financial incentives and customer willingness to pay a premium for green products have slowed meaningful progress.
As new advances come to market, manufacturers who are alert to the need to reduce their carbon footprint can take advantage of such technological developments.
Using technology to support emissions reduction goals
Orica, which supports the goals of the Paris Agreement, is working towards net zero emissions by 2050. The installation of tertiary catalyst abatement technology at Kooragang Island helped Orica deliver the equivalent Scope 1 emissions abatement of 500,000 tCO2-e in its first full year of emissions reduction performance and by February 2025 the technology had abated one million tonnes of emissions, which Orica compared to taking 600,000 cars off the road.
Since the installation of the Kooragang Island Decarbonisation Project, Orica has continued the rollout of the tertiary catalyst abatement technology at its Yarwun nitric acid plants in Queensland.
Sustainability recognised
The Australian Financial Review named Orica Australia’s most sustainable company for Impact in 2024 at its Sustainability Leaders Awards, marking the success of the Kooragang Island Decarbonisation Project as the biggest emissions abatement project in the nation’s chemicals sector. Orica secured top honours in the Resources, Energy and Utilities category as well as overall winner for Impact.
