Hiringa Energy, Ballance green gas project still on track – Country’s first green hydrogen project ready to put delays behind it

Hiringa Energy, Ballance green gas project still on track – Country’s first green hydrogen project ready to put delays behind it

Country’s first green hydrogen project ready to put delays behind it.

Despite court cases, cost rises and supply delays, Hiringa Energy remains committed to building New Zealand’s first green hydrogen project in partnership with Ballance near that company’s Kāpuni plant in Taranaki.

First proposed in 2019, the project will draw electricity generated by four massive 200m-high wind turbines using electrolysis to turn the power into hydrogen. 

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.

Matt Luscombe, Hiringa’s head of development, said the project’s progress had been delayed by Greenpeace’s efforts to block the project through the courts. The case was ultimately dismissed both in the initial hearing, and on appeal by Greenpeace in late 2023.

Delays have meant the project’s cost has increased and partners are reassessing how much more capital will be required. He said the need for extra capital has to some extent been offset by the corresponding rise in electricity and fertiliser values that happened at the same time.

Luscombe, said :

All partners remain very committed to seeing the project continue,

The project has received almost $20 million of government investment as equity while Hiringa has a government-backed loan of $16m to put towards the hydrogen fuel and fuel network system it is rolling out. 

At this stage three hydrogen refuelling sites are located in Auckland, Palmerston North and Hamilton, with a fourth site under construction in Tauranga.

An artists impression of the four Kapuni wind turbines due for installation in coming months. Photo: Supplied

Our aim is to create a fuel network that enables high-volume transport companies to refuel throughout the North Island and through to Christchurch.

Hiringa is also overseeing the roll-out of a hydrogen-powered truck fleet through its transport partner Truck Rentals. 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. 

While powered by hydrogen fuel cells, trucks can also be powered through a dual fuel system where diesel trucks are retro-fitted with additional hydrogen fuel tanks. The capital cost of such systems is lower than the electric hydrogen cell systems.

Luscombe said 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.

Ryan McDonald, Hiringa’s head of new business, acknowledged that globally the hydrogen fuel market has been challenging, but said challenges have also been faced by the battery electric vehicle sector.

Energy giant Origin dropped out of an Australian green hydrogen project last year, citing uncertainty in the alternative fuel market.

But McDonald said 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.

There a joint venture with Sundown Pastoral, a 60,000 hectare cotton grower, will use solar-generated electricity to generate “green hydrogen” for nitrogen fertiliser production.

“That project is well on track and due to start in 2026.”

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