Transitioning to a low carbon future

OUR PATH TO LOW CARBON GAS

Graphic BBQ Clearcut
We believe gas has a big part to play in New Zealand’s energy future. Thanks to extensive research and close monitoring of international efforts, we’re planning the route towards distributing cleaner, more energy efficient gas – and to ultimately helping New Zealand reach its zero carbon goal by 2050.

OUR PATH TO LOW CARBON GAS

Natural gas and LPG are currently a critical energy source for more than 430,000 Kiwi homes, commercial and industrial customers – from restaurants and hotels to greenhouses, hospitals and steel makers. At Firstgas Group, we want New Zealanders to continue enjoying the benefits of gas while keeping Aotearoa clean and green. That’s why we’ve spent three years investigating the possibilities of using our pipelines to help provide low carbon gas alternatives to natural gas and LPG: primarily hydrogen, biogas and bioLPG – ultimately helping meet New Zealand’s zero carbon goal by 2050.

Transition Timeline

Shaping the future of gas

180019201950196019701980199020002010Today20302040
1860
  • ‘Coal town gas’ lights NZ streets, homes and fuels household heating and cooking
1865
  • The first oil/gas well drilled in NZ.
1920
  • Street lights go electric.
1959
  • Natural gas discovered at Kapuni
1969
  • Maui field discovered
1970
  • Cleaner burning ‘natural gas’ from Kapuni replaces reticulated ‘coal gas’.
1979
  • Maui commences production
1986
  • Introduction of Compressed Natural Gas (CNG) for cars.
1987
  • Kupe field discovered
1992
  • First landfill biogas generated to make electricity and piped gas.
2000
  • Pohokura field discovered
2004
  • CNG production ceases.
2006
  • Pohokura commences production.
2017
  • Tuaropaki Trust Geothermal powered H2 pilot
2018
  • Crown Minerals amendment Act passed to ban new exploration permits outside onshore Taranaki. 31 active existing permits remain and 15 existing fields will continue to operate.
2019
  • First Gas Hydrogen Pipeline Trial gets funding form the Provincial Growth Fund
  • Hyundai Nexo Hydrogen fuel cell vehicle (FCEV) imported into NZ and demonstrated at Field Days.
  • Hyundai creates the first mobile hydrogne filling station in NZ.
  • Climate Change Response Ammendment Act passed to set in place climate changes policies that enable NZ to meet our Paris Agreement commitments.
  • National New Energy Development Centre in Taranaki announced
  • Hiringa Energy Green Ammonia project with Ballance Agrinutrients announced.
  • Ecogas biogas project in partnership with Turners and Growers at Reporoa commences.
  • H2 Taranaki Roadmap produced to show the potential for a hydrogne transition in Taranaki
  • NZ Hydrogen Vision released by the NZ government.
2020
  • 300,000 homes powered by natural gas accounting for around 1/4 of households.
  • NZ homes account for less than 1% of greenhouse gases in NZ
  • 120,000 customers use LPG in their homes or businesses.
  • Around 80% of electricity from renewable energy, 14% from natural gas and 6% from coal
  • Powerco gas network 95% carbon zero ready, (all subdivisions 100%)
  • Hiringa/Ballance Green Ammonia project gets PGF funding.
    Ports of Auckland Hydrogen demonstration project for forklifts, cars and train
  • Ara Ake (National New Energy Development Centre) established and leads with a study on Hydrogen for heavy transport.
  • Construction begins at the Ecogas biogas facility in Reporoa
  • Beca, Firstgas, Lion, Fonterra and EECA commence industry study on biogas potential
2021
  • First Powerco biogas and/or hydrogen customer
  • Hiringa Energy first nationwide hydrogen refuelling networks comes online. Network of 8 refilling stations.
2021 - 2025
  • First injection of biomethane into the gas grid
  • Green gas certification and trading scheme developed
  • Hydrogen physical research development and demonstration projects by Firstgas, PowerCo and other network operators
  • CCUS pilots at geothermal power station
2025
  • A Further 16 hydrogen filling stations rolled out by Hiringa Energy
  • First offshore windfarm
  • Hydrogen blend introduced into distribution networks
  • Hydrogen export commences
  • Biogas production increases and enough biomethane is produced to meet residential gas demand
  • First biogas project with CCUS to create negative emissions technology
  •  BioLPG production commences in NZ
2030
  • Hydrogen and biogas emerge as ultra-clean and efficient energy sources?
  • 100 Hiringa energy hydrogen filling stations
  • Conversion of gas grid to hydrogen commences
  • Electricity 100% renewable
  • End of LPG imports as bioLPG production sufficient for local demand
  • NZ exports 10 MTPA hydrogen powered by offshore wind
2040
  • Petrol cars imports banned
  • Conversion of gas grid to hydrogen complete
Our path to low carbon gas

WE’RE ON THE WAY TO CHANGING GAS FOR THE BETTER

Natural gas and LPG are cleaner burning fuels with far lower CO2 emissions than coal [1] but along with the rest of New Zealand’s energy sector – we need to do even better. That’s why we’ve spent three years investigating the possibilities of using our pipelines for low carbon gas alternatives to natural gas and LPG: primarily hydrogen, biogas and bioLPG.

How we're changing gas

With the support of the government’s Provincial Growth Fund, we’re already looking at how we can use our existing gas  pipelines to carry renewable gas to Kiwi homes and businesses, including leading part of a Hydrogen Pipeline Trial and being part of a Biogas Industry Study. We’re also closely following the results of extensive hydrogen research and development in Australia and Europe – where some gas networks are already successfully blending up to 20% hydrogen.

As part of the World Energy Council’s Global Hydrogen Initiative, we’ve committed to introducing 20% hydrogen (by volume) into our gas pipelines by 2030. Our research shows that we can convert the Firstgas pipeline network to 100% hydrogen by 2050. This step would reduce New Zealand’s energy emissions by nearly 25%.

If you’re currently using natural gas or LPG in your home or business, the good news is that you won’t need to do a thing. Regular appliances will work on a 20% blend of hydrogen, and our network is already set up to deliver it. So you can continue enjoying the benefits of gas while we make it cleaner behind the scenes.


1. Emmisions climate

How we're changing gas
Rockgas Series Filming May  RAW PHOTOS
Hydrogen, biogas and bioLPG

LOW CARBON GAS IS ON ITS WAY

We’re right behind cleaner gas. That’s why we’re always keeping an eye on other newer technologies to understand their potential and how they can support the energy market in the future.

Hydrogen, biogas and bioLPG

Here’s a bit more about the low carbon gas alternatives we’re planning to transition our pipelines to carrying.

Hydrogen

Hydrogen is made through the electrolysis of water. This type of hydrogen is potentially zero carbon and can either be burned like natural gas or used in a fuel cell to store, and produce electricity at a later time.

Biogas

Biogas is a direct, low carbon replacement for natural gas and is produced by anaerobic digestion of organic waste (food waste, food processing waste, sewage – anything you can compost).

BioLPG

BioLPG is a direct replacement for LPG, produced from inedible oils and waste animal products during the manufacturing of renewable diesel and other biofuels. Its carbon emissions vary depending on the feedstock and sources of energy.

Hydrogen, biogas and bioLPG
HA min
Leading the change

We’re 100% behind New Zealand’s carbon zero goal

As a member of the Climate Leaders’ Coalition, we’re 100% behind New Zealand’s carbon zero goal. We also want to make sure energy remains affordable and accessible for all Kiwis. It’s a challenge we’ve been working on for some time now, and we believe we’re well on our way to finding a solution.

Rockgas Series Filming May  RAW PHOTOS