Auckland port's hydrogen project snags key Japanese investor

Wednesday, 4 August 2021

Auckland Transport's trial hydrogen bus gases up at Ports of Auckland's hydrogen refuelling station.

A Japanese company which helped build a pilot hydrogen plant near Taupo is investing on a second energy project at Ports of Auckland.

Obayashi Corporation and iwi-based Tuaropaki Trust are preparing to open what's described as the country's first megawatt-class green hydrogen facility near Taupo.

Their joint venture, Halcyon Power, is expected to formally open a pilot plant in a few weeks.

In the meantime, Obayashi has become an equity partner in Ports of Auckland's hydrogen project.

The port plans to eventually build an electrolyser which would provide enough green hydrogen not only for the port but potentially for other vehicles such as buses and rail.

At Glenbrook, south of Auckland, a small facility makes low-emissions hydrogen gas.

* NZ to collaborate with Singapore on hydrogen export potential

* Green hydrogen projects: Plenty of chat but limited cash

It could also eventually roll out hydrogen at its inland hubs for long-haul trucks, when and if hydrogen versions become more readily available.

In the meantime, the introduction of Auckland Transport's trial hydrogen bus has prompted the port to build an interim refuelling station, with hydrogen being brought in from elsewhere.

Rosie Mercer, the port's general manager of sustainability, said the port wants to become zero carbon by 2040 and saw synergies with Obayashi's work in Taupo.

Atlhough critics of hydrogen point out that it takes a lot of electricity to make, Mercer says the fuel has its place at the port which operates around the clock.

“Hydrogen really jumped out for us as having high potential as our fuel source for the future,” she said.

“Yes, it might be more energy intensive to produce the hydrogen but that hydrogen enables the piece of kit to operate far closer to 24/7, with zero emissions than at the moment, with the [electric] battery equivalent.”

Mercer said it would be no mean task to convert the bulk of the port's equipment to hydrogen.

“You think of all the stuff we have that runs on diesel, our straddles, reach stackers, all the other container handling equipment … pilot boats, tug boats, a fleet of trucks that our subsidy company Conlinxx-Nexus operate on diesel.

“And it's all operating in that heavy freight container handling environment that you want to be able to keep operating, rather than having downtime with battery charging.”

Trucks with hydrogen fuel cells are still very expensive but Hiringa Energy and Hyzon are working to build the infrastructure to encourage trucking companies to switch.

The refuelling station, in the meantime, would use hydrogen brought in from BOC's green hydrogen plant in Glenbrook.

“It's a financially sensible approach to getting started when you've only got a small number of vehicles, Mercer said.

A memorandum of understanding already exists between the port, Auckland Transport, Auckland Council and Kiwirail to explore the use of hydrogen.

Auckland Transport and Taranaki’s Hiringa Energy are also involved in a hydrogen refuelling facility being developed in south Auckland.

And Kiwirail is investigating electric and hydrogen power for ferries.

With the exception of the Obayashi link, Mercer said there were no formal connections with other hydrogen projects around the country but all the players were talking to each other to “try to enable the industry to grow”.

New Zealand has memoranda of understanding with Japan and Singapore to develop hydrogen technology, which could result in green hydrogen exports from New Zealand.

Obayashi’s 1.5MW hydrogen facility with Tuaporaki Trust was reportedly completed in March and will support the two parties’ research and development.

The trust has declined to talk until the plant is opened, but it sits alongside the trust's existing Mokai geothermal power plant.

Alternative fuel research has been gaining momentum since the Government laid out a goal for electricity generation to be 100 per cent renewable by 2030.

Officials are investigating the merits of both hydrogen and electricity initiatives like pumped storage.

Last month electricity companies Contact and Meridian invited investors to express their interest in building a green hydrogen plant in Southland, using surplus power that could become available if the Tiwai aluminium smelter closes as scheduled at the end of 2024.

Critics of that project say the power could be better used to help make up the growing demand for electricity in the coming decades.