Greenpeace action opposing the consent of a green hydrogen project for use in urea production has been dismissed by the New Zealand Court of Appeal.

Planned by Hiringa Energy and Ballance Agri-Nutrients, the Kapuni Green Hydrogen Project plans to generate hydrogen using four new wind turbines.

Hydrogen produced from the site is initially planned for use in Ballance’s Kapuni urea site, to reduce reliance on imported fertiliser made with fossil fuels. However, over time the hydrogen is planned to be used entirely for refuelling.

Greenpeace’s complaint over the project was not surrounding the new turbines or green hydrogen production. Greenpeace Aotearoa said it did not support a “blank cheque for Hiringa and Balance to produce more urea.”

The group said, urea was an agri-chemical which “pollutes the climates, rivers and drinking water.”

Urea is used as a nitrogen fertiliser, however, concerns over run-off into water bodies and the release of nitrogen into the atmosphere have regularly been raised.

It also stressed it did not support the project which “disrespected” the wishes of local hap? of Ng?ruahine who had “issues with the wind turbine location.”

Following a dismissal of the original action, the Court in December (2023) dismissed Greenpeace’s appeal, saying the urea produced from green hydrogen would be a “very small fraction” of the annual tonnage of urea used in New Zealand.

Additionally, it noted that Balllance had resource consents from the local council for water take and discharges associated with urea production. Finally, it considered that the project’s proposal was to see 100% of the hydrogen move to use as mobility fuel over a five-year period.

Cathy Clennett, Chair of Hiringa Energy said the Court of Appeal decision was a “tremendous relief.”

“This wind generation capacity of up to 24 MW will supply renewable electricity directly to the project which will power an electrolyser to produce industrial scale green hydrogen to be used both as feedstock into the Ballance plant to reduce the plant’s environmental footprint, and as a zero-emission transport fuel,” Clennett said.

Kelvin Wickham, Chief Executive of Balance, added, “The Kapuni project can now move forward with our goal of beginning to produce green hydrogen as soon as possible.

“The Kapuni project will provide a lower carbon footprint for New Zealand farmers and growers, as well as supplying green hydrogen for Hiringa Energy’s heavy vehicle hydrogen refuelling network.”