A new facility in Southland that will produce critical minerals and hydrogen will receive a $15 million funding boost from the government’s Regional Infrastructure Fund.

Regional Development, Resources, and Associate Energy Minister Shane Jones made the announcement at a hydrogen sector hui in Christchurch on Wednesday morning.

“The coalition government is supporting Aspiring Materials Limited with funding to develop a $31m commercial-scale plant that will bring its world-leading technology to market,” Mr Jones said.

The company has developed a patented process that produces green hydrogen while separating valuable minerals from quarry waste.

“It is home-grown technology with the potential to produce green hydrogen while undertaking the business’ core task of creating value from critical minerals and essential materials that are used daily across Kiwi industries,” Mr Jones says.

“Green’’ hydrogen is produced by electrolysis, a process that uses electricity to split water into hydrogen and oxygen. Hydrogen is considered “green” when the electricity used is from renewable sources.

“This funding is from $80 million ring-fenced in the Regional Infrastructure Fund (RIF) for critical minerals projects. It shows the government is pulling as many levers as it can to boost economic development. Hydrogen can be part of a broader industrial opportunity for New Zealand,” Mr Jones said.

The government has already signalled its support for hydrogen development through the Hydrogen Action Plan.

“New Zealand needs a range of energy solutions to support economic growth and improve resilience,” Mr Jones says.

“Hydrogen has the potential to play an important role in reducing emissions in parts of the economy where electrification isn’t the best option.

“This could be in heavy transport where the range and weight of a battery can be a problem, and heavy industry such as where specific chemical reactions or high temperatures are needed,” Mr Jones said.

The $15m RIF investment for Christchurch-based Aspiring Materials will be a mix of loan and equity, with details still to be finalised.

“This project combines energy innovation, advanced manufacturing and New Zealand expertise in a way that could create value across multiple sectors and support the development of new energy industries.

“This is about positioning New Zealand – and especially our regions – to take advantage of emerging opportunities to strengthen our energy sector and support new technologies and resources that will play an important role in our future economy,” Mr Jones said. — Allied Media