Argus Media Limited

05/02/2022 | News release | Distributed by Public on 05/02/2022 01:22

FFI adds to New Zealand hydrogen ventures

The low-emissions energy arm of Australian iron ore producer Fortescue Metals has signed an agreement with New Zealand gas pipeline operator Firstgas to develop hydrogen projects from renewable energy to sell to New Zealand's residential and business sectors.

Fortescue Future Industries (FFI) and Firstgas will carry out feasibility studies on the potential development of projects, including assessing the use of existing energy assets, FFI said.

Firstgas operates New Zealand's largest gas network with over 2,500km of transmission pipelines and 4,800km of distribution pipelines in the North Island. It announced plans in March 2021 to decarbonise New Zealand's pipeline network by transitioning from natural gas to hydrogen. From 2030 hydrogen will be blended into the North Island's natural gas network, with the aim of reaching a 100pc hydrogen grid by 2050.

FFI also has an agreement with the operator of an oil products import terminal located at the site of New Zealand's former sole refinery. FFI and Channel Infrastructure NZ, formerly Refining NZ, signed an agreement in December last year to study the feasibility of producing and distributing industrial-scale green hydrogen from the decommissioned 135,000 b/d Marsden Point site.

FFI in August signed a collaboration agreement with a tribal group in New Zealand to assess the potential of developing a hydrogen project fuelled by renewable energy, with first production targeted as early as 2025, located near the Tiwai Point aluminium smelter on the South Island.

By Kevin Morrison