Fortescue Future Industries (FFI) and Firstgas Group (Firstgas) have announced a new collaboration to examine creating green hydrogen projects with the goal of further decarbonizing New Zealand’s energy system and enhancing energy security.
FFI and Firstgas have entered into a non-binding Memorandum of Understanding to explore options to manufacture and supply green hydrogen to tens of thousands of New Zealand homes and companies.
Firstgas operates New Zealand’s largest gas network, with over 2,500 kilometers of high-pressure transmission pipelines and 4,800 kilometers of distribution pipelines linking over 300,000 households and businesses to gas. Firstgas proposed a plan in March 2021 to decarbonize New Zealand’s pipeline network by switching from natural gas to hydrogen. Hydrogen will be mixed into the North Island’s natural gas network beginning in 2030, with the goal of converting to a 100% hydrogen grid by 2050.
FFI and Firstgas will conduct feasibility studies to determine the technical, commercial, and operational factors of proposed projects, thereby enabling their development. This will include an assessment of the efficiency with which existing energy assets are being used.
FFI Chief Executive Officer, Julie Shuttleworth AM said, “Green hydrogen production and its use in New Zealand will provide energy security, create local jobs, and enable the decarbonisation of local heavy industry – all while reducing emissions for New Zealand.”
FFI Director of Australia East and New Zealand, Felicity Underhill said, “Partnering with companies like Firstgas enables us to combine FFI’s global experience and expertise in green hydrogen, with strong local knowledge and existing infrastructure. We’re particularly inspired by the strong alignment of purpose between FFI and Firstgas to help decarbonise New Zealand.
“I look forward to working with Firstgas to investigate the development of projects that include the distribution of green hydrogen and assist New Zealand with its decarbonisation plans,” Ms Underhill said.
Paul Goodeve, Firstgas Group Chief Executive said, ”Working with Fortescue marks an important step in Firstgas’ development and scale-up of renewable fuels and we are excited about the opportunities this relationship presents.
“Integrating green hydrogen into NZ’s current energy mix gives our country the best available balance of energy security, energy equity, system resilience and environmental sustainability,” added Goodeve.
This intriguing new partnership builds on a previous agreement between FFI and Channel Infrastructure to examine the viability of industrial-scale green hydrogen production, storage, and distribution from the Marsden Point fuel terminal.
