Hiringa Energy says it remains committed to building a green hydrogen energy facility in partnership with fertiliser co-operative Ballance in Taranaki following court cases, rising costs and supply delays.
First proposed in 2019, the $70 million project aims to draw electricity generated by four 200-metre-high wind turbines using electrolysis to turn the power into hydrogen for Ballance’s plant in Kapuni.
This will in turn be a feedstock gas for Ballance urea production, and a source of hydrogen-powered vehicle fuel for Hiringa. A portion of the wind-generated power will also be sold back into the national grid.
It aims to remove the equivalent emissions of up to 30,000 cars per annum and help decarbonise heavy transport.
The project received $19.9m in funding through the previous government’s Provincial Growth Fund as well as significant investment from industries interested in New Zealand renewable energy including Japanese trading and investment multinational Mitsui & Co.
However, it has faced court cases, cost rises and supply delays. In 2022, the project was blocked by Greenpeace and South Taranaki hapū which appealed the High Court’s approval of the work.
Greenpeace claimed the High Court erred in failing to find that the consenting panel’s decision breached the Covid-19 Recovery Fast-Track Consenting Act by placing no conditions on when and how the project will transition from fertiliser feedstock production to hydrogen fuel production.
In December 2023, the project was again given the green light with the Court of Appeal dismissing action opposing the consent.
Speaking to Farmers Weekly, Hiringa’s head of development, Matt Luscombe, says Greenpeace’s efforts to block the project has caused delayed progress. In turn, this has increased costs and partners are reassessing how much more capital will be required.
“All partners remain very committed to seeing the project continue,” Luscombe says.
Hiringa also has a $16m government-backed loan for its green hydrogen refuelling network being rolled out with sites located in Auckland, Palmerston North and Hamilton, with a fourth site under construction in Tauranga.
“Our aim is to create a fuel network that enables high-volume transport companies to refuel throughout the North Island and through to Christchurch,” Luscombe says.
Hiringa is also overseeing the roll-out of a hydrogen-powered truck fleet through its transport partner TR Group. The 20 trucks are a combination of Hyundai and trucks built by Christchurch company Global Bus Ventures. NZ Post already has one truck in operation.
Luscombe says having Ballance as a partner has provided a solid foothold for establishing the green hydrogen project, with the ability to gradually lift uptake from a small base of hydrogen fuel for transport use.
Hiringa’s head of new business, Ryan McDonald, acknowledged that globally the hydrogen fuel market has been tough, but challenges have also been faced by the battery electric vehicle sector.
But McDonald says Hiringa remains confident about the project’s future, and pointed to a well-advanced green hydrogen project it is engaged in at Moree, New South Wales.
“That project is well on track and due to start in 2026,” McDonald says.
