Fortescue monitors New Zealand hydrogen venture, hope raises for Tiwai aluminium smelter operations beyond 2024

The fourth-largest iron ore producer globally with its headquarter in Australia, Fortescue Metals has inked a partnership agreement with a tribal group in New Zealand to evaluate the possibilities of developing a hydrogen project fuelled by renewable energy with the first production as early as 2025.

The energy arm of the iron ore exporter, Fortescue Future Industries (FFI) signed the deal with the Murihiku hapu of Ngai Tahu, with the project in the South Island's Southland province subject to a primary assessment process and an investment decision by Fortescue and the New Zealand authorities.

The Southernmost region of New Zealand, Southland has surfaced as a potential hydrogen production hub in the country with domestic utilities Meridian Energy and Contact Energy mutually studying the development of a green hydrogen export facility at Southland using electrolysers powered by 600MW of renewable energy.

As Southland is the region of the nation's only aluminium smelter, operated by New Zealand Aluminium Smelters majorly owned by global metal giant Rio Tinto, which will pursue to function until the end of 2024, following its new electricity agreement with Meridian. However, it builds hope for the Tiwai Point Aluminium smelter to remain functional beyond 2024.

FFI has unfolded in recent months a hydrogen venture in India, Brazil and in December’20 announced a collaboration with Japanese energy firm Iwatani and engineering firm Kawasaki Heavy Industries to study a green hydrogen project in Australia, focusing on future exports to Japan.