Hydrogen technology to play a big role at rebranded PEC in Marton

Richard Coxon says the "greenness" of hydrogen was what triggered his interest in it. Photo / Supplied

Gallagher Fuel Systems in Marton has officially rebranded after coming back to local ownership – and a greener future is on the cards.

After completing a management buyout from Hamilton-based Gallagher Group, managing director Richard Coxon returned it to a name with a long history - PEC.

That company was founded in Rangitīkei in 1939, and has remained at the forefront of fuel-dispensing technology ever since.

It also manufactures electronic equipment for companies across New Zealand.

The original PEC was acquired by Gallagher in 1999.

"There have been some major technological milestones that have come out of here, and still come out of here," Coxon said.

"It's something we are immensely proud of. For me, being able to leverage that is a pretty cool thing to do."

Coxon is into his 18th year as managing director and has been involved with the company since 1990.

Having a hi-tech company based in regional New Zealand was part of what made it unique, he said.

"In the mid-1990s there were 350 people employed here, with 120 software engineers. It was one of the country's technological hubs.

"It's a great story, made even better by the fact that it came from Marton."

At present, there are just over 90 people employed by the company.

There were "fairly ambitious growth plans" in place at PEC, which would result in a lot more jobs in the future, Coxon said.

"The goal is to provide sustainable, fulfilling technology careers for everyone involved."

Exploring opportunities in hydrogen fuel is at the top of Coxon's to-do list.

While PEC's core business was still based on petrol pumps, it was hard to imagine the same technology being used in 100 years, he said.

There are just over 90 staff employed at the Marton facility currently. Photo / Supplied

"Something has got to give, and I'm a firm believer in the logic behind hydrogen.

"It's transportable, it's light, and the energy created for its weight is much greater than oil.

"If we think about heavy vehicles, trains, planes and boats, hydrogen is a logical transition for that type of transportation as well."

Coxon said the "greenness" of hydrogen was the key thing that had triggered his interest.

"We can't dig up the planet for resources at the rate we are and expect to last another 500 years.

"I think we still have a really short-term mindset, and short-term return on investment thinking."

One of PEC's partners was the Japanese company Tatsuno, which had been investing in hydrogen dispensing for more than 20 years, Coxon said.

"That means I'm able to leverage all that knowledge, hundreds of man-years' worth of development effort, simply with that partnership.

"The advantage for New Zealand is we've got these headstarts. We don't have to try and reinvent the wheel. It gives us a massive shot in the arm."

Hydrogen dispensing came with a lot of complexity, he said.

"Dispensing into a car is at a bit over 10,000psi and at -40C. It's not simple, and it's not a like-for-like replacement on a petrol station, with a slightly different dispenser.

"There is a whole new infrastructure involved."

Coxon said countries such as Japan, Germany, China, and South Korea had already implemented hydrogen transportation technology.

"From a consumer point of view, what it enables you to do is go about your daily activities normally.

"You go to a station, you fill up your car, and off you go again for the next 600km or 700km. That's what we are used to.

"A battery vehicle doesn't give you that. There are a lot more logistical issues you need to grapple with."

Petrol pumps still represent about 60 per cent of PEC's income, with the rest coming from contract manufacturing.

"The hydrogen industry is zero per cent, but we are at the forefront of understanding it, and I've been living this for four or five years," Coxon said.

"It's a hard road, but it's a road I'm getting more and more passionate about every day."