Victorian Hydrogen is proposing a $3 billion urea plant to be located 30km northeast of Invercargill.
The company says it could deliver 1.5 million tonnes a year of urea fertiliser (using 3 million tonnes of lignite), making New Zealand's agricultural sector fully self sufficient.
The Country's Jamie Mackay explained further.
LISTEN ABOVE

Enda Brady: UK correspondent on what the UK byelection could mean for Starmer's future?
05:08

Sam Dickie: Fisher Funds expert on Kevin Warsh making debut as Federal Reserve chair
03:55

Jamie Mackay: The Country host on Rabobank's latest survey showing farmer confidence has taken a hit
03:19