PGF investment in green hydrogenDeputy Prime Minister
The Government is investing $19.9 million through the Provincial Growth Fund in a game-changing hydrogen energy facility in South Taranaki, Deputy Prime Minister Winston Peters announced today.
“The development of alternative energy initiatives like this one is vital for the Taranaki region’s economy. We are pleased the PGF is working with Taranaki businesses to build sustainable long-energy term industry,” Mr Peters said.
The joint venture between Ballance Agri-Nutrients Limited and Hiringa Energy Limited will see the production of green hydrogen from renewable electricity and water at a facility in Kapuni, South Taranaki. The green hydrogen produced will then be used to power the Ballance Agri-Nutrients’ Kapuni plant.
“The Kapuni plant is a significant contributor to South Taranaki’s economy and this project will create around 50 jobs during construction and an additional seven jobs after construction,” said Mr Peters.
“This initiative is expected to attract significant investment from industries interested in New Zealand green hydrogen and to be a catalyst for a green hydrogen market, and contribute to major growth through the Taranaki region and nationally.
“In the future, green hydrogen produced by these sorts of projects could fuel our heavy transport industry.”
This investment comes from a $40 million commitment from the PGF to support renewable energy projects. Through this the PGF has funded four hydrogen projects in Taranaki which lay the groundwork for a clean energy future for the region. Another $3.16 million has been announced to fund two wind turbines on Stewart Island.
“Projects like this will make a serious difference for the future of a cleaner, greener New Zealand. We look forward to announcing further PGF funding for Taranaki as New Zealand transitions to a low emissions economy,” Mr Peters said.
Note to editors:
- Ballance is one of New Zealand’s leading producers and distributors of Agri-nutrients. It has owned and operated New Zealand’s only ammonia and urea plant at Kapuni since 1992 and is one of South Taranaki’s largest employers.
- Hiringa Energy Limited is an energy company focused on accelerating the roll-out of hydrogen production, distribution and refuelling infrastructure within New Zealand.
Funding from the Provincial Growth Fund is approved in principle and announced, after which contracts are negotiated. Some funding may depend on completion of business cases. Payments are made once agreed milestones are met. These are set as part of contract negotiations, and differ from project to project.