Source: Radio New Zealand
File photo. The company says it could deliver 1.5 million tonnes a year of urea fertiliser. 123RF
An Australian-led project could see Southland’s lignite, or brown coal, reserves developed into urea fertiliser.
Victorian Hydrogen is proposing a $3 billion plant to be located 30km northeast of Invercargill.
The company says it could deliver 1.5 million tonnes a year of urea fertiliser, making New Zealand’s agricultural sector fully self sufficient.
Urea created using natural gas is by far the most widely traded fertiliser in the world, and while New Zealand produces some locally, the bulk is imported.
Victorian Hydrogen’s plan would involve building a facility that can turn the Southland lignite into gas that can then be transformed into urea.
Executive director Allan Blood said it was a proven technology that was already being used in a new plant commissioned in Zambia in late 2025.
Blood expected the project, which would not involve accquiring farms, would seek fast track consenting approval.
He said environmental managment would be central to the project’s design and the company was committed to mitigating greenhouse gas impacts before the projects proceeded.
Former government owned company Solid Energy investigated a similar lignite-to-gas plan in Southland but dropped the idea in 2013.
– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
