The list of contenders to build a possible green hydrogen plant in Southland has been narrowed to two Australian firms.
Hydrogen production is being billed as a green alternative source of energy. Photo: 123RF
Woodside Energy and Fortescue Future Industries are in final negotiations to build and develop the project, which is being promoted by power companies Contact and Meridian.
The production of hydrogen and ammonia from renewable energy in the South Island has been touted as suitable use of power whether or not the Tiwai Point smelter closes after 2024.
Meridian's general manager of development, Guy Waipara, said both companies had shown that large scale hydrogen production was technically and commercially feasible.
"The effort they've put into it gives us real confidence into the commercial aspects of the programme now."
Meridian and Contact would take another few months to look at the final refined proposals from both companies, and once a preferred partner had been decided on then they could get "really stuck into" the project, he said.
It was even possible that both contenders might be involved in the final project, and even some of the parties that did not make it through to the shortlist, Waipara said.
He said there was still a lot of work to be done in terms of design, engineering, and costing before a final proposal would be ready to have an investment decision made about it, probably two years away.
Waipara said the progress made on what could eventually be a $2 billion or more project reflected the rapid progress of hydrogen as a fuel to help decarbonise economies, and the New Zealand project had already started to see potential customers emerge.