Kapuni renewable energy and green hydrogen project going ahead

Thursday, 5 February 2026

A computer-simulation of the four wind turbines to be built for the Kapuni Project, the country’s first project to integrate wind, industrial renewable electricity supply and green hydrogen production at scale.

A landmark renewable energy and green hydrogen project at Kapuni is going ahead after years of uncertainty.

The $112.33 million project will see four 206m high wind turbines built on a farm owned by Parininihi ki Waitōtara (PKW) near the Ballance Agri-Nutrients site at Kapuni.

The electricity generated will 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 has stations in Wiri (South Auckland), Te Rapa (Hamilton), Palmerston North and Tauriko (Tauranga).

Hiringa Energy already has refuelling stations in Wiri (South Auckland), Te Rapa (Hamilton), Palmerston North and Tauriko (Tauranga).

Green hydrogen is so called because its production uses a renewable electricity source.

Electricity generated by the turbines could also exported to the national grid and supply power company Nova Energy's network, which is owned by the Todd Corporation.

The project is expected to be generating renewable electricity and green hydrogen in 2027, with construction expected to begin in March.

The project is a partnership between development and operating partner Hiringa Energy, Ballance Agri-Nutrients, Todd Corporation, Parininihi ki Waitōtara and the Ministry of Business, Innovation and Employment.

“Kapuni is not just a wind farm - it’s a collaborative and integrated energy project that demonstrates how strong partnerships between industry, Māori and government can drive innovation, economic opportunity and a successful energy transition,” Hiringa Energy co-founder and chairperson Catherine Clennett said in a press release.

“It shows how we can decarbonise industry, strengthen regional economies, and build new low-emissions energy systems that generate long-term regional value through local construction, operations and supply chain opportunities for communities and for Aotearoa.”

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

Some of the electricity will be used at Ballance Agri-Nutrients' Kapuni ammonia-urea plant and to produce green hydrogen that will reduce the amount of gas used in manufacturing fertiliser.

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

It is the first project in Aotearoa to integrate wind, industrial renewable electricity supply and green hydrogen production at scale, and was supported by $19.9m allocated from the former Government’s Provincial Growth Fund in 2020.

Regional Development Minister Shane Jones said about 50 jobs were expected to be created during construction, with a further seven permanent roles established post construction.

“We’ve waited more than five years for this project to begin, after it was delayed by years of red tape and appeals under the previous Resource Management Act consent process,” he said.

Regional Development Minister Shane Jones welcomed the announcement the project was going ahead.

“A delay like this, for a project so important to a regional economy, shouldn’t have happened. I welcome the economic benefits, jobs, and alternative energy source this initiative will bring to Taranaki.”

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

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

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

Ballance Agri-Nutrients chief executive Kelvin Wickham said the sector depended on certainty, and investing in renewable energy would help protect that for the long term.

“We also know the wider challenges around gas supply aren’t going away overnight. This project is an important step forward. It opens up new options for the future and helps us keep working toward nutrient production that’s powered by renewable energy and supports agricultural businesses for generations to come.”

PKW chair Dion Tuuta said by working in partnership and taking a long-term view, the corporation was helping shape a more sustainable future for its people and for Aotearoa.

“The Kapuni Project reflects our responsibility as kaitiaki to invest in opportunities that protect our environment while creating lasting benefits for our uri.”