Meridian chief executive Neal Barclay says the company expects to choose which of two shortlisted parties will partner with it on its Southern Green Hydrogen project by the end of the year. Photo: RNZ / Nate McKinnon
New Zealand energy companies will need to invest at least $30 billion in renewable energy over next few decades to meet carbon zero targets by 2050.
Meridian Energy chair Mark Verbiest told an annual shareholders meeting that would be on top of the additional investment in transmission and distribution networks.
"That investment will have to be paid for - whether by way of private or public funds and we will all end up paying for it - as customers and taxpayers most likely," he said, adding that investment would have some upside benefits for households.
"While the investment required is considerable, ultimately electrification of more services, particularly personal transport, is likely to end up resulting in lower overall household energy bills, due to transport fuel savings."
Chief executive Neal Barclay said Meridian was focused on green hydrogen as the fuel of the future.
He said the company's Southern Green Hydrogen project was full steam ahead and it was working with two shortlisted parties - Fortescue Future Industries and Woodside - to be its project partner.
"We expect to choose one party and agree terms for the development stage of the project by the end of the year and reach a final investment decision in 2024, with plant commissioning in 2027," Barclay said.
"Green hydrogen is a tomorrow's technology. Global growth projections are mind blowing."
He said domestic projections for hydrogen demand were likely to exceed the capacity of Southern Green Hydrogen by a few times.
"So, we see the project as creating a foundation toward energy independence for our country as we wean ourselves off fossil fuels."
Christchurch Airport steps up green hydrogen development
Christchurch and Hamburg airports also announced today they had made a deal to work together on green hydrogen development for hydrogen-powered vehicles and aeroplanes.
"In building a hydrogen infrastructure, airports face the challenge of developing suitable technical storage options - but we are working with Hamburg Airport to find solutions," Christchurch Airport chief executive Malcolm Johns said.
"We both want to actively prepare and promote the future use of green hydrogen as an emission-free energy carrier in aviation and exploit synergy effects," he said.