Kapuni Renewable Hydrogen Project
Kapuni Renewable Hydrogen Project
New wind generation capacity would supply electrical power to an ammonia-urea plant in New Zealand with excess capacity used to power electrolysers to produce hydrogen that can be used as feedstock to the urea plant or for hydrogen fuel cell transport vehicles.
| Main proponents:
Ballance Agri-Nutrients, Hiringa Energy |
Main end-use classification:
Industrial process – ammonia production, hydrogen mobility |
Status:
Advanced development – subject to a positive final investment decision, operations could commence in 2022 |
Estimated cost:
NZ$50 million |
| Other involvement:
|
Production details:
Hydrogen production – 2,000 kilograms per day capacity |
Location:
South Taranaki, New Zealand |
Announced funding:
NZ$19.9 million – New Zealand Government’s Provincial Growth Fund |
Project description
The purpose of this proposed development is for new wind generation to supply (renewable) electrical power to an ammonia-urea plant with excess generation capacity used to power electrolysers to produce hydrogen that can be used as feedstock to the urea plant or for hydrogen fuel cell transport vehicles.
Ballance Agri-Nutrients is a large New Zealand fertiliser company and is owner/operator of an ammonia-urea manufacturing facility at Kapuni in South Taranaki, on the North Island. Hiringa Energy is an energy development company located in Taranaki and focused on developing (renewable) hydrogen supply and refuelling infrastructure networks throughout New Zealand.
The Kapuni ammonia-urea plant produces around 260,000 tonnes of agricultural urea per annum (and is New Zealand’s only ammonia-urea manufacturing plant). The natural gas used to power the station and as feedstock for ammonia production is sourced from the nearby offshore Maui gas field.
Under a Joint Development Agreement announced in June 2019, the two companies are planning the construction of up to four large wind turbines, with a total capacity of at least 16 megawatts (MW), to supply renewable electricity to the Kapuni ammonia-urea facility.
Excess electricity generated would be used to power an electrolyser plant capable of producing up to 2,000 kilograms per day of hydrogen (depending on wind conditions). The produced hydrogen would be used as feedstock to produce ammonia or for supply as a clean transport fuel.
The capital cost of the project is estimated at around NZ$50 million.
Milestones:
June 2019: A Joint Development Agreement is announced by Ballance Agri-Nutrients and Hiringa Energy to develop a ‘green’ hydrogen project using renewable energy in Taranaki.
March 2020: The New Zealand Government announces it is investing NZ$19.9 million through the Provincial Growth Fund in the proposed development.
This description was reviewed by a project proponent in August 2020.