Gas and engineering company BOC says its plant at Glenbrook will produce the first supply of certified carbon-free, or "green", hydrogen in New Zealand.
BOC, a subsidiary of the American-Anglo-German multinational Linde plc, said it would make carbon-free hydrogen for the neighbouring New Zealand Steel plant.
The company said the move could pave the way for providing carbon-free, or "green" hydrogen for transport.
BOC's plant uses an electrolysis process to produce industrial and fuel-cell grade hydrogen.
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The electricity used in the process is certified as having zero associated carbon emissions – meaning the hydrogen has zero associated carbon emissions as well.
BOC is being supplied power by South Island renewable energy specialist generator and retailer Kea Energy.
Vesna Olles, BOC's director of clean energy and hydrogen, said the move to supply Glenbrook with green hydrogen would mean 300 tonnes a year of carbon dioxide would not enter the atmosphere.
NZ Steel uses a significant volume of hydrogen for its metal coating and treatment process which forms the basis of the manufacture of Colorsteel and other coated flat-steel products.
Its Glenbrook Mill will receive more than 50 per cent of the green hydrogen produced by BOC through the existing pipeline between the two South Auckland sites.
BOC's Glenbrook hydrogen production plant supplies manufacturers, electricity companies, refineries and steelmakers.
It also supplies other BOC production sites across New Zealand including its BOC cylinder-filling facility in Penrose.