Work begins on long-awaited Kapuni green energy project

“Earlier this month, along with our project partners Hiringa Energy, Todd, Parininihi ki Waitōtara and the Ministry of Business, Innovation and Employment (MBIE), we marked the start of construction with a site blessing.”

Work was now under way to prepare the site, creating access and building the roads and laydowns, with foundation work scheduled to begin in July.

The electricity generated would be used at the Ballance Kapuni ammonia-urea plant for site operations and to produce “green” hydrogen to augment some of the natural gas feedstock used to manufacture lower-carbon fertiliser.

It would also be used to produce green hydrogen for emissions-free transport via Hiringa Energy's refuelling operations, which had stations in South Auckland, Hamilton, Palmerston North and Tauranga.

It was one of the first projects in Aotearoa to integrate wind, industrial renewable electricity supply and green hydrogen production at scale.

The project would support New Zealand’s energy transition by creating local jobs, while also adding sovereign energy generation that improved the country’s energy security.

The combination of those benefits was a significant step forward in New Zealand’s energy transition and resilience.

The project was supported by $19.9m allocated from the former Government’s Provincial Growth Fund in 2020.

The wind farm was expected to generate approximately 100 GWh of renewable electricity per year – equivalent to powering around 24,000 homes.

The project included installing a 5MW capacity hydrogen electrolyser to integrate with the wind farm and the Ballance Kapuni plant.

The electrolyser would use the renewable electricity to split water into oxygen and hydrogen to produce up to two tonnes of green hydrogen per day.

First mooted in 2020, as a $70m project, it was delayed by opposition from Greenpeace and several Taranaki hapū.

But the objections were twice thrown out by the Court of Appeal, with the last decision in 2023.