The smelter at Tiwai Point is 79pc owned by Rio with the remaining interest held by Japan's Sumitomo.

The smelter at Tiwai Point is 79pc owned by Rio with the remaining interest held by Japan's Sumitomo.Credit:Getty Images

Fortescue chair Andrew Forrest wants the miner to make 15 million tonnes of green hydrogen a year by 2030 by separating it from water using renewal power.

Meanwhile,Woodside is pursuing green hydrogen as well as blue hydrogen,made by extracting it from gas and either burying or offsetting some or all of the substantial greenhouse gas emissions.

Forrest has labelled the process a fake clean fuel used to greenwash by fossil fuel companies.

Meridian Energy and Contact Energy launched a search for a partner in June 2021,a year after Rio Tinto announced it would close its Tiwai Point aluminium smelter mainly powered by a Meridian hydroelectric plant.

The promise of a large source of ready clean power attracted more than 80 businesses that were narrowed to four in February:the two Australian companies,the Japanese trading house Mitsui and a subsidiary of German specialty gas company Linde.

Woodside and Fortescue’s plans have been complicated by Rio Tinto reversing its exit decision meaning there could be a three-way bidding war for the hydropower.

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Southern Green Hydrogen wants the detailed proposals to land by August and aims to select a candidate shortly afterwards.

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Meridian Energy chief executive Neal Barclay said the initial proposals from Fortescue and Woodside have both clarified that large-scale production and export of green hydrogen or green ammonia from the southern tip of the country is technically feasible and commercially sound.

“This is a complex project in a relatively new global market,” Barclay said.

“Both have demonstrated that global markets for green hydrogen and green ammonia are imminent,and both are engaged in discussions with customers about buying the large volumes that the Southland plant will produce.”

Fortescue Future Industries director Felicity Underhill said green hydrogen would help New Zealand decarbonise its own industry and transport sector. FFI is also investigating a green hydrogen project on the site of an oil refinery in New Zealand’s North Island.

Woodside and Fortescue are also chasing hydropowered green energy projects in Tasmania. Progress there has been slowed by Hydro Tasmania only offering to firm up wind power rather than fully power a green hydrogen plant.

Both companies are under pressure to make progress on hydrogen:Forrest to demonstrate real progress to match his often-articulated vision and Woodside needs to show it is more than a gas company while it continues to face opposition to its flagship $7 billion Scarborough gas project.

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