Kapuni Project reaches Financial Close, unlocking integrated renewable energy and green hydrogen production in Taranaki
- Hiringa Energy
- 5 hours ago
- 5 min read
Hiringa Energy, in partnership with Ballance Agri-Nutrients, Todd, Parininihi ki Waitōtara (PKW) and the Ministry of Business, Innovation and Employment (MBIE), is pleased to announce that the Kapuni Project has reached Financial Close. Hiringa Energy is the development and operating partner for the project on behalf of the partners. The project has been supported by non-recourse project financing from Westpac NZ.
The Kapuni Project is a landmark renewable energy and green hydrogen project in Aotearoa. It is a collaborative venture between the partners, who are collectively committed to advancing the energy transition in Aotearoa by delivering renewable energy and low-emissions technologies, strengthening regional economies, and supporting long-term community wellbeing.
Kapuni is the first project in Aotearoa to integrate wind, industrial renewable electricity supply and green hydrogen production at scale. This integrated system enables the project to decarbonise multiple sectors simultaneously, including transport, energy, industry and agriculture. The project will support the energy transition of Aotearoa by creating local employment opportunities during construction, commissioning, and ongoing operations, while also adding sovereign energy generation that enhances the energy security profile of Aotearoa. The combination of those benefits represents a significant step forward in the energy transition and resilience of Aotearoa.
Located in Kapuni, South Taranaki, the project utilises the region’s exceptional wind resources to generate renewable electricity through four 6.4 MW wind turbines, providing a combined installed capacity of 25.6 MW. The wind farm is expected to generate approximately 100 GWh of renewable electricity per year - equivalent to powering around 24,000 homes, which is more than the New Plymouth urban area.
The project includes installing a 5 MW capacity hydrogen electrolyser to integrate with the wind farm and the Ballance Kapuni plant. The electrolyser will use the renewable electricity to split water (H20) into oxygen and hydrogen to produce up to two tonnes of green hydrogen per day. Green hydrogen production can be scaled up or down, in line with market growth and demand. It plays a key role in decarbonising the transport and industrial sectors in Aotearoa and enables industries to transition at their own pace.
The renewable electricity generated at Kapuni can be used to:
Supply renewable electricity for the Ballance Kapuni plant and site operations
Produce green hydrogen for emissions-free transport via Hiringa Energy’s refuelling operations
Produce green hydrogen to augment some of the natural gas feedstock used to manufacture lower carbon fertiliser at the Ballance Kapuni plant
Be exported to the national grid to support Hiringa Energy and Ballance’s operations and supply Nova Energy’s network
In doing so, the project will enhance the overall renewable energy supply and support decarbonisation across the wider energy system in Aotearoa.
In the production of lower carbon fertiliser, the green hydrogen produced and supplied to Ballance’s Kapuni plant can be used to augment some of the natural gas feedstock to produce low emission ammonia and urea. Additionally, green hydrogen produced can support Hiringa Energy’s national green hydrogen refuelling network, which has stations in Wiri (South Auckland), Te Rapa (Hamilton), Palmerston North and Tauriko (Tauranga). The network opened in 2024 and has displaced more than 272,000 kgs of CO₂ equivalent emissions to date. This project will also provide a pathway for Taranaki-based refuelling in the future.
The project represents the Taranaki region’s first green hydrogen production, and the largest green hydrogen production capacity in Aotearoa. This flexible supply of green hydrogen is an identified element of the Taranaki Economic Development Strategy, Tapuae Roa, in particular the Energy Futures pillar. The availability of supply will catalyse the regional piloting and adoption of green hydrogen in agriculture, energy and transport, enabling another important tool in the energy transition toolkit.
Preliminary construction activities will commence this month, with the first stage focused on civil enabling work at the location of wind turbines. The project is expected to be generating renewable electricity and green hydrogen in 2027.
“Reaching Financial Close is a major milestone for the Kapuni Project and for the wider energy sector in Aotearoa. Kapuni is not just a wind farm - it’s a collaborative and integrated energy project that demonstrates how strong partnerships between industry, Māori and government can drive innovation, economic opportunity and a successful energy transition. It shows how we can decarbonise industry, strengthen regional economies, and build new low-emissions energy systems that generate long-term regional value through local construction, operations and supply chain opportunities for communities and for Aotearoa. We are looking forward to working with our partners and key contractors to deliver this exciting project” said Hiringa Energy Co-Founder and Chair Catherine Clennett.
“Ballance Agri-Nutrients has supported the Kapuni Project from day one because we know how important reliable, low emissions energy is for the future of agriculture in Aotearoa. Our sector depends on certainty, and investing in renewable energy helps protect that for the long term. We also know the wider challenges around gas supply aren’t going away overnight. This project is an important step forward. It opens up new options for the future and helps us keep working toward nutrient production that’s powered by renewable energy and supports agricultural businesses for generations to come. At its heart, this project is about backing farmers and growers with solutions that support productive, profitable and sustainable farming today and into the future,” said Kelvin Wickham, CEO, Ballance Agri-Nutrients.
“Todd recognises wind and green hydrogen as important emerging opportunities for New Zealand’s energy future, with the potential to support decarbonisation across transport and industry. Partnerships like the Kapuni Project represent what will be required in the future to deliver new technologies and business models that contribute to regional development and the energy transition, enabling a better future for New Zealand,” said Todd CEO Evan Davies.
“The Kapuni Project reflects our responsibility as kaitiaki to invest in opportunities that protect our environment while creating lasting benefits for our uri. By working in partnership and taking a long-term view, we are helping to shape a more sustainable future for our people and for Aotearoa.” says Dion Tuuta, Chair of PKW.
"This project is a reflection of the region's inherent capability in the energy sector and the vision that Taranaki has for its own future. Innovation, workforce development, collaboration, and the drive to transition to a low-emissions future can all found in the Kapuni project. Congratulations to Hiringa, Ballance, and all involved on financial close," said Kelvin Wright, CE, Te Puna Umanga Venture Taranaki, the regional development agency.
Visit the Kapuni Project website for more information https://www.greenhydrogennz.com/
