Kapuni Project reaches Financial Close, unlocking integrated renewable energy and green hydrogen production in Taranaki
Ballance Agri-Nutrients, in partnership with Hiringa Energy, 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.
The Kapuni Project is a landmark renewable energy and green hydrogen project in New Zealand. It is a collaborative venture between the five partners, who are collectively committed to advancing New Zealand’s energy transition by delivering renewable energy and low-emissions technologies, strengthening regional economies, and supporting long-term community wellbeing.
Kapuni is one of the first projects 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 New Zealand’s energy transition by creating local employment opportunities during construction, commissioning, and ongoing operations, while also adding sovereign energy generation that enhances New Zealand’s energy security profile. The combination of those benefits represents a significant step forward in New Zealand’s energy transition and resilience.
Located in Kapuni, South Taranaki, the project leverages 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 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’s refuelling operations
Produce green hydrogen to augment some of the natural gas feedstock at the Ballance Kapuni plant
Be exported to the national grid to support Hiringa and Ballance’s operations and supply the Todd network.
In doing so, the project will enhance New Zealand’s overall renewable energy supply and support decarbonisation across the wider energy system.
The project includes installing a 5MW 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 green hydrogen.
Green hydrogen production can be scaled up or down, in line with market growth and demand. It plays a key role in decarbonising New Zealand’s transport and industrial sectors and enables industries to transition at their own pace.
In the production of lower carbon fertiliser, the green hydrogen can be used to augment some of the natural gas feedstock. Additionally, green hydrogen produced can support Hiringa’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 267,000 kg of CO₂ equivalent emissions to date. This project will also provide a pathway for Taranaki-based refuelling in the future.
Hiringa will commence construction of the wind farm in early March 2026, 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.
The Kapuni Project has been supported by non-recourse project financing from Westpac.
“Ballance Agri‑Nutrients (Ballance) has supported the Kapuni Project from day one because we know how important reliable, low‑emissions energy is for the future of agriculture in New Zealand,” says Kelvin Wickham, Ballance Agri-Nutrients Chief Executive Officer.
“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.”
Read more about the project on our website: ballance.co.nz/hydrogen
Or visit our partner Hiringa Energy’s website: www.hiringaenergy.com
Ballance Agri-nutrients Kapuni site.