PERTH (miningweekly.com) – New Zealand power company Meridian has tapped ASX-listed Woodside Energy as its preferred partner for the development stage of the Southern Green Hydrogen (SGH) project in New Zealand.

Woodside was selected after an extensive competitive bidding process based on its capability and experience in operations, process safety and liquids marketing.

“We’re very pleased to be partnering with Woodside which, like us, is focussed on progressing a world-class hydrogen and ammonia facility in Southland, New Zealand, that will provide significant benefits to the local community,” Meridian CEO Neal Barclay said.

“In addition to its operational and marketing expertise, Woodside has demonstrated climate change ambitions, and as we are a 100% renewable energy company and committed to sustainability, that was a key focus for us in selecting a partner.”

Mitsui & Co is also in discussions to join the project and develop the potential market for ammonia offtake, with the aim of creating a world-class collaboration that covers the full hydrogen and ammonia supply chain.

Subject to finalising commercial arrangements, Meridian, Woodside and Mitsui will work towards commencing front-end engineering design for the project.

“We are pleased to have been selected as the preferred partner for the proposed SGH project. Woodside brings the technical skill and operations experience to develop this project at pace to meet customer demand for hydrogen, which we expect to grow in the energy transition. We look forward to working with Meridian and Mitsui to potentially offer this important customer solution both domestically and globally,” Woodside CEO Meg O’Neill said.

Meridian, Woodside and Mitsui will actively work with Ngāi Tahu and the local Rūnanga to ensure the project aligns with their energy vision for the region and supports their principles under mana whenua.

“We believe a large-scale hydrogen and ammonia facility in Southland, focused on the export market, will accelerate the development of a domestic hydrogen economy and strengthen New Zealand’s platform to contributing to decarbonising our transport and industrial sectors,” Barclay added.

“It will also create new opportunities in an emerging industry for the local community. We expect the facility will have the added benefit of being able to provide up to 40% of New Zealand’s dry year flexibility needs to the electricity sector.”

The proposed project is targeting to produce 500 000 t/y of ammonia using electrolysis from renewable power. Technical work on the facility is continuing in parallel with the design of the commercial structure for the project. Options for the supply of hydrogen and ammonia to the domestic market, as well as for the potential to export ammonia to Asia and Europe, will be assessed.

SGH originally consisted of Meridian and Contact. Contact has made the decision to no longer continue into the next phase of the project as a development partner, but has indicated an interest in continuing to support the project as a potential electricity supplier.

A final investment decision will follow the development stage.