Potential for hydrogen hub
Manawatu¯ looks set to benefit from the rise of hydrogen in the transport and energy sectors, as major companies look for greener alternatives to fossil fuels.
Central Economic Development Agency chief executive Linda Stewart said the region had the potential to become a hub for hydrogen production, with two major companies promising significant investment in the sector.
Firstgas, New Zealand’s largest gas network operator, recently identified Palmerston North as a prime candidate for one or more of the 15 new North Island hydrogen production facilities required for its plan to replace natural gas with hydrogen by 2050.
Stewart said that when added to the nearly $40 million investment Hiringa Energy had already committed to build a refuelling station and production facility in the city over the next decade, this would provide a promising foundation for introducing a brandnew industry to Manawatu¯.
A growing hydrogen sector would bring more skilled jobs to the region, she said. Hiringa’s network alone was expected to create 175 jobs, with 20 in Manawatu¯ for the refuelling station.
Stewart said Hiringa was working with the Palmerston North City Council to find a suitable location for the $7m refuelling station, and it aimed to start construction by early 2022.
Firstgas and Hiringa both chose to invest in Manawatu¯ for similar reasons – its location and resources, she said.
‘‘We’re uniquely blessed with what is needed to make green hydrogen at scale, and that is water and renewable energy.’’
Hydrogen is produced by electrolysis, the process of using electricity to split water into hydrogen and oxygen, which is cleaner than extracting natural gas or fossil fuels. With renewable electricity sources, the process has no carbon emissions.
Firstgas project manager Angela Ogier said a new hydrogen production plant in Manawatu¯ would play a key role in decentralising the company’s North Island network.
The Firstgas report also found Manawatu¯’s gas infrastructure was made of modern materials and equipment that could be repurposed to supply hydrogen rather than having to be replaced.