Taranaki Hydro Project Could Cost $ 4 Billion

The company behind the construction projects of a clean hydrogen power plant in Taranaki indicates that it would cost up to $ 4 billion and represents the largest foreign investment ever made in New Zealand.

Pouakai NZ, a wholly – owned subsidiary of US – based 8 Rivers, has announced its intention to pursue its proposal, which would use natural gas to create hydrogen and electricity, as well as Urea – based fertilizers for domestic and export use without any release of greenhouse gases.

The plans were announced Saturday and the company asked the government to fund a $ 50 million feasibility study, but if the project materialized, it would be fully funded by private funds, said a spokesperson of Pouakai NZ.

However, Andrew Clennett of New Plymouth-based hydrogen company Hiringa Energy said that whatever the government's decision to move away from oil and gas exploration, there was no guarantee that there was enough natural gas reserves in Taranaki for a project of this type.

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"It is important to understand that we are dealing with limited gas resources in New Zealand," he said.

"Certainly, nature reserves are not particularly robust, it's one of the concerns."

The plant would still produce carbon dioxide as a by-product, but Pouakai NZ aims to trap and store it.

"We still have to make sure we can store all this and how much will it cost?" Clennett said.

Hiringa Energy is studying the production of "green" hydrogen, which uses renewable energy instead of fossil fuels.

Clennett said that he was unaware of any research done by Pouakai, but that it was increasingly possible to create hydrogen at the same time. renewable energy help.

"We are not far from producing hydrogen from renewable energy at the same cost as producing it from natural gas. Over time, it will be cheaper."

Councilor Stacey Hitchcock, who visited Scotland last month as part of an industry research group, said that hydrogen was part of the solution to the future economy of Taranaki.

"This is the kind of technology we will need," she said.

"Renewable energies are not yet at a level where we can turn off oil and gas – we need this bridge."

She added that if the goal was simply to produce zero emissions, the technology used by Pouakai NZ met the demand.

But if the government was fundamentally opposed to the use of fossil fuels, it would expect an accelerated strategy and investments in renewable energy such as wind turbines.

Taranaki South Mayor Ross Dunlop said it would be good to link the new project, the Waverley Wind Farm to the Kapuni Ballance Ammonia / Urea Plant.

"This could even give more reasons for exploration to continue."

Cameron Madgwick, chief executive of the Petroleum Exploration and Production Association, NZ (Pepanz), said the government needed to rethink oil and gas exploration.

"This is an excellent example of the role of natural gas in a less carbon-rich world.

"This could be a win-win result, invest billions of dollars and create new jobs while helping the government achieve its emissions reduction goals."

Greenpeace however asks the government to specify that any investment in hydrogen technology should target clean hydrogen from renewable sources.

"We should invest in energy systems based on clean and endless sources, such as wind and solar," said activist Steve Abel.

Labor Minister of Energy and Resources, Megan Woods, was unable to comment on the current application of the Provincial Growth Fund (FGP), but said in a statement that it was developing a hydrogen strategy so that we could take advantage of all the exciting opportunities it represents for us ".

"We have already invested PGF money in hydrogen projects."

A spokesman for Regional Economic Development Minister Shane Jones confirmed that a request had been made to the FDP, but could not say more.