Meridian Energy, which supplies the Tiwai Point smelter operated by Rio Tinto, will conduct a six-month, NZ$2 million study with Contact Energy concerning how renewable hydrogen production may offer potential exports and help manage power production at a low cost during dry years.
A large plant in Southland may cushion the impact of the closure of the smelter, and help decarbonize transport.
The Tiwai Point smelter, which consumes about 14 percent of New Zealand's power, has been uneconomic because of its high energy demands.
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