SPONSORED
April 4, 2025

From Northland to Waikato: How CO₂ Shortages Rerouted a $70M Tomato Vision

tomatoes
Photo source: Flickr

A $70 million promise of winter tomatoes and 110 permanent jobs has slipped through Northland’s fingers—not because of land disputes, resource consents, or economic downturns, but because of an invisible gas: carbon dioxide.

Rohe Produce’s high-tech glasshouse project, once billed as a transformational leap for Northland’s horticulture industry, has been uprooted and is now set to take root in Waikato. It’s a move that underscores not only the fragility of New Zealand’s CO₂ infrastructure but also the adaptability required of modern agriculture in a world shifting away from fossil fuels.

A Vision for Tomatoes and Transformation

Originally planned for Marsden Point, the 8.9-hectare glasshouse was designed to grow organic specialty tomatoes using cutting-edge LED lighting and sustainable farming techniques. With water recycling systems, natural pest management, and a clean energy focus, the facility aimed to deliver high-yield tomatoes year-round, particularly in winter when prices typically spike.

At its launch in 2020, then-Regional Economic Development Minister Shane Jones heralded the project as a game-changer for Northland. Backed by a $14 million Provincial Growth Fund loan (yet to be drawn down), the development was projected to create 110 permanent jobs and stabilise the domestic tomato market.

The CO₂ Collapse

The vision, however, depended on one key component: a steady supply of food-grade CO₂. Glasshouse-grown plants thrive on elevated CO₂ levels, which enhance photosynthesis and drive higher yields. For large-scale operations like Rohe’s, supplemental CO₂ is essential.

The location at Marsden Point was strategic – sitting near New Zealand’s only oil refinery, a major CO₂ producer. But when the refinery shut down in 2022, the project’s foundation crumbled. With Marsden Point offline, Rohe Produce was left without a viable CO₂ supply, and the project went into limbo.

Rerouted to Resilience

Now, five years after the plan was first unveiled, the build is preparing to restart—this time in Waikato. According to Kānoa, the government’s Regional Economic Development and Investment Unit, Waikato offers access to a more secure CO₂ supply, although no final deal has been confirmed.

“The company will move the location for construction of its high-tech glasshouse to the Waikato to be close to a potential supply of CO₂,” Kānoa’s Kay Read said. While the funding agreement remains intact, no funds have been released, pending milestone completion.

Northland, once poised for a horticultural boom, stands to lose both the jobs and the downstream economic activity. Waikato, in turn, could gain a new pillar for its growing agri-tech sector – if the CO₂ supply proves dependable.

A National Wake-Up Call

The relocation highlights a broader vulnerability in New Zealand’s CO₂ infrastructure. With Marsden Point gone, the country faces a national shortage of food-grade CO₂. Industries from beverage bottling to meat processing and horticulture are feeling the pinch.

While temporary fixes are emerging—such as Contact Energy’s efforts to recover CO₂ from geothermal operations—long-term solutions remain uncertain. Options like bio-based CO₂ capture or imports are being explored, but they face cost, logistics, and sustainability challenges.