Chris Blenkiron, the chief executive of New Zealand Aluminium Smelters Limited (NZAS), stated that smelting is better for the environment than a "green hydrogen" plant since it employs more people and generates more income per unit of electricity used. However, if a new power supply agreement with power producers is not reached by the end of 2024, the Tiwai Point Aluminium Smelter, owned by NZAS will have to shut down.
Chris Blenkiron stated, "I'm hopeful that through our aluminium, our participation in the energy sector and our determination to be responsible environmental guardians that our story can continue beyond 2024,"
There is a rumour that a deal is close to being called. According to the reports, Chris Blenkiron revealed to the Trans-Tasman Business Council that he has been in contact with power producers about keeping Tiwai in business when its existing power contracts end in 2024.
"We produce two tonnes of carbon per tonne of aluminium, versus an industry average of 12 to 13 tonnes of carbon per tonne of aluminium. So we're not just marginally better, we're damn near the best on the planet and that's something we're really proud of. Yes we turn [electricity] into aluminium, but we also turn it into those jobs and into GDP. We also use it to decarbonise the planet," said Chris Blenkiron.
If discussions fail, the smelter might be used to feed a new plant that would split water into hydrogen and oxygen to produce hydrogen fuel for the transportation industry. The smelter utilises roughly 12 per cent of the nation's electricity.
"When comparing to say green hydrogen, aluminium provides five times the jobs and three times the GDP. When transporting hydrogen or green ammonia long distance, the global warming potential is significantly higher than burning natural gas," added Blenkiron.
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A green hydrogen plant can be built in Southland without conflicting with keeping the smelter open, according to Blenkiron, adding Tiwai may even be a foundation customer for a green hydrogen facility owing to its significant need for green hydrogen in its industrial processes regularly. He also suggested that the corporation could produce some of the energy it requires on its own, suggesting that it might increase the nation's energy supply "through assisting the development of additional renewables."
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