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Work begins on long-awaited Kapuni green energy project.

Source: thepost.co.nz

TL;DR

Construction starts on the Kapuni green energy project after financial close and a site blessing.
The $112.33 million initiative includes four 6.4 MW wind turbines and a 5 MW electrolyser for green hydrogen.
It supplies renewable power to Ballance's Kapuni fertiliser plant and boosts New Zealand's low-emissions energy shift.

The story at a glance

Work has begun on the long-awaited Kapuni green energy project in South Taranaki, led by Hiringa Energy with partners Ballance Agri-Nutrients, Todd Corporation, Parininihi ki Waitotara, and the Ministry of Business, Innovation and Employment. The project follows financial close in February 2026 and includes a recent site blessing and official naming. It is reported now as preliminary civil works mark the shift from planning to building after years of delays and legal challenges.[[1]](https://www.thepost.co.nz/nz-news/360981619/work-begins-long-awaited-kapuni-green-energy-project)

Key points

Features four 6.4 MW Vestas wind turbines for 25.6 MW total capacity, expected to generate 100 GWh of renewable electricity yearly.[[2]](https://www.linkedin.com/posts/todd-corporation_partnership-renewableenergy-greenhydrogen-activity-7424899783036928002-hfJc)[[3]](https://www.bcinsight.crugroup.com/2026/02/18/kapuni-project-reaches-financial-close-in-taranaki)
Includes a 5 MW electrolyser to produce up to two tonnes of green hydrogen daily, integrated with Ballance's nearby urea plant.[[4]](https://todd.co.nz/our-news/kapuni-project-achieves-financial-close-strengthening-todds-position-in-renewable-energy)
Renewable power will supply Ballance's site operations, with surplus exported to the grid via Nova Energy and hydrogen used for transport and industry.[[5]](https://www.hiringaenergy.com/post/kapuni-project-reaches-financial-close-unlocking-integrated-renewable-energy-and-green-hydrogen-pro)
Total cost is $112.33 million, backed by $19.9 million government funding from 2020 and non-recourse financing from Westpac.[[1]](https://www.thepost.co.nz/nz-news/360981619/work-begins-long-awaited-kapuni-green-energy-project)[[6]](https://www.hydrogeninsight.com/production/new-zealand-s-largest-green-hydrogen-project-takes-fid-more-than-five-years-after-securing-government-funds/2-1-1939383)
First electricity and hydrogen production expected in 2027, creating local jobs in construction and operations.[[3]](https://www.bcinsight.crugroup.com/2026/02/18/kapuni-project-reaches-financial-close-in-taranaki)

Details and context

The project integrates wind power, industrial electricity supply, and green hydrogen production at scale, a first for New Zealand. It aims to cut emissions at Ballance's gas-to-urea plant by replacing some natural gas with hydrogen and providing zero-emission fuel for heavy transport via Hiringa's network. Electricity links the wind site on PKW land to the plant via new infrastructure.[[7]](https://ballance.co.nz/hydrogen)

Delays stemmed from appeals against consents granted in 2021 under fast-track COVID recovery rules, dismissed by the High Court in 2022 and Court of Appeal later. Financial close in early 2026 unlocked funding after over five years from initial government support.[[6]](https://www.hydrogeninsight.com/production/new-zealand-s-largest-green-hydrogen-project-takes-fid-more-than-five-years-after-securing-government-funds/2-1-1939383)

Preliminary civil works for turbine sites started recently, following the site's blessing, with full construction ramping up after Vestas turbine order in February.[[8]](https://utilitymagazine.com.au/vestas-wins-26mw-kapuni-wind-farm-order-in-nz)

Key quotes

"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."

— Kelvin Wickham, CEO, Ballance Agri-Nutrients[[9]](https://www.bcinsight.crugroup.com/wp-content/uploads/sites/7/2026/03/FI_531_iPad.pdf)

Why it matters

This project advances New Zealand's energy transition by delivering renewable power and green hydrogen to industry and transport in a fossil fuel-dependent region. It means lower-carbon fertiliser production for farmers, new jobs in South Taranaki, and scalable hydrogen for decarbonising heavy sectors. Watch for 2027 production start and any grid integration issues, as further expansion depends on demand and policy support.