Green hydrogen proves hard to ship The idea of building ‘‘the world’s biggest green hydrogen plant’’ in the south has been welcomed by most. But making the new wonder fuel so far from potential markets creates a shipload of challenges. Mark Price reports.

Published date09 September 2021
So why are electricity generators Meridian Energy and Contact Energy not considering a hydrogen plant for New Zealand’s main potential market, Auckland, which has all the necessary ingredients and more?

There are several reasons, but the main one seems to be the New Zealand market for hydrogen will be too small for too long.

Contact general manager strategy James Flannery said the companies had looked at a range of possible locations before settling on ‘‘the lower South Island’’.

‘‘Demand for hydrogen in Auckland and elsewhere in the North Island will take a long time to develop and this demand will be quite small relative to the volumes of hydrogen that can be produced in the lower South Island.

‘‘As such, it is likely that the vast majority of the hydrogen produced in the lower South Island will be exported.’’

The electricity generation companies are now looking for potential large consumers, producers, and associated service providers of the low-carbon fuel to register their interest with Southern Green Hydrogen — a joint project by the electricity generation companies.

It is investigating the use of renewable energy at Tiwai Point, to produce green hydrogen at scale, once the supply agreement with New Zealand’s Aluminium Smelter finishes at the end of 2024.

A market review as part of that project has concluded major international demand for green hydrogen is imminent.

If it goes ahead — and that is a big if — it can only mean a new trade for a port like Bluff.

But, as of this moment, there is a major snag.

The world has only one small ship capable of carrying bulk liquefied hydrogen.

And, it is still being tested.

The Suiso Frontier, built by Japan’s Kawasaki Heavy Industries, is due to make its maiden voyage, carrying hydrogen from Australia to Japan, in the next few months.

Its designers had to overcome a major issue unique to transporting hydrogen. Liquid hydrogen must be supercooled to cryogenic temperatures for shipping.

In May this year, Reuters reported transporting hydrogen was the biggest technological challenge for merchant shipping in decades.

‘‘The major challenge is to keep the hydrogen chilled at -253degC — only 20degC above absolute zero, the coldest possible temperature — so it stays in liquid form, while avoiding the risk that parts of a vessel could crack.’’

Kawasaki vice-executive officer Motohiko Nishimura, told Reuters the next phase of the project, already running, was to build a commercial-scale hydrogen carrier, fuelled by...

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