There are opportunities for green hydrogen to reduce emissions in areas that are hard to electrify, support economic development and regional transitions, and underpin our energy security and resilience.
New Zealand has a highly renewable electricity system and significant potential for new generation capacity that could be used to produce green hydrogen as a next generation, low-emissions fuel and energy carrier. Green hydrogen has the potential to help reduce our emissions in some hard-to-electrify applications such as long-haul heavy transport, specialty vehicles, industrial feedstocks, process heat, and in future aviation and marine transport.
Growing New Zealand’s hydrogen industry presents an opportunity to help New Zealand achieve its commitments to reduce net emissions of all greenhouse gases (except biogenic methane) to zero by 2050, support regional economic transitions by creating highly-skilled jobs, and could underpin our energy security and resilience by reducing dependence on imported fuels and providing back-up power options.
Hydrogen in New Zealand has potential to support decarbonisation efforts overseas through a future market for export trade of hydrogen or hydrogen-based derivatives. It will be important to ensure be able to increase renewable electricity generation and transmission capacity to match this ambition, without compromising our domestic electrification goals. The Government has recently consulted on proposals to strengthen national direction for renewable electricity infrastructure, and has a work programme underway through the Electricity Market Measures Project to ensure we have the right settings to enable a highly renewable electricity system that is affordable and resilient.
Measures for transition to an expanded and highly renewable electricity system
MBIE is currently consulting on the Interim Hydrogen Roadmap, which:
We are seeking feedback on our understanding of the opportunities and trade-offs for using hydrogen in New Zealand, and the proposed role the Government could play in supporting it.
The consultation is open for submissions until 2 November 2023, 5pm.
For more information and to have your say visit:
New Zealand is home to a vibrant early-stage hydrogen ecosystem. The Government has partnered with communities, industry, and academics to support many of the early projects.
This map shows key hydrogen projects, research and agreements around the country as at April 2022.
Hydrogen projects in Aotearoa New Zealand
The Government committed to develop a hydrogen roadmap as part of the Emissions Reduction Plan released in 2022.
The hydrogen roadmap builds on the green paper A Vision for Hydrogen released in 2019 and forms a pillar of the forthcoming New Zealand Energy Strategy (due by the end of 2024) alongside other projects including the Gas Transition Plan, Energy Market Measures project, Offshore Renewable Energy regulatory framework project, and the New Zealand Battery Project.
We are now seeking public feedback on an Interim Hydrogen Roadmap, which outlines the Government’s initial position the role of hydrogen in meeting our energy system, climate and economic goal and proposes government actions to establish a sustainable and safe hydrogen industry in Aotearoa New Zealand. We plan to finalise the Hydrogen Roadmap for release alongside the New Zealand Energy Strategy by the end of 2024.
Although hydrogen is already well regulated for its traditional uses, the existing regulatory systems are not well set up to support new hydrogen technologies and applications. It is important to evaluate how fit-for-purpose the current regulatory settings are for new hydrogen technologies and novel applications of hydrogen, such as a low-emissions fuel, and ensure they are consistent with international best practice standards.
Ensuring the current regulatory settings are fit-for-purpose is critical for facilitating the safe introduction of new hydrogen technologies and applications, and in promoting domestic and international investment in hydrogen in New Zealand.
The Government has made it a priority to develop appropriate regulatory settings and standards to facilitate the uptake of hydrogen. Work to date has included:
An MBIE-commissioned report by PwC to review the regulatory frameworks required to support a future hydrogen economy in New Zealand and potential reform pathways needed.
PDF, 3.6MB, 92 pages
In the Interim Hydrogen Roadmap, the Government committed to regulatory work to enable safe basic operation of hydrogen projects to support near term use cases.
This work builds on the foundations we have built through our cross-agency regulatory work to understand the whole-of-Government regulatory environment. It will focus on making changes needed to enable safe use of near-term activities such as production, storage and distribution, and applications like heavy road transport, building on the discussions we have had to date with sector participants on the barriers they face to deploying hydrogen. The regulatory regimes in scope include (but are not limited to):
The Government is collaborating internationally to support research and development of hydrogen technology as we move towards a low-carbon economy. This includes:
signing an Arrangement of Cooperation with Singapore
Arrangement of Cooperation with Singapore(external link) — Ministry of Foreign Affairs and Trade
supporting joint research projects with Germany under the New Zealand – Germany Green Hydrogen Research programme
New Zealand – Germany Green Hydrogen Research programme
representing New Zealand at the Japan Hydrogen Ministerial since 2018
Memorandum of Cooperation on hydrogen with Japan(external link) — beehive.govt.nz
joining the new hydrogen initiative under the Clean Energy Ministerial
The Hydrogen Initiative(external link) — the Clean Energy Ministerial
leading work within the Asia-Pacific Economic Cooperation (APEC) to initiate discussion on the development and implementation of an international standard for low-carbon hydrogen.
Low-Carbon Hydrogen International Standard(external link) — APEC Project Database
representing New Zealand in the Association of Southeast Asian Nations (ASEAN) Working Group on Demand and Supply
Demand and Supply Potential of Hydrogen Energy in East Asia(external link) — ASEAN Potential of Hydrogen Energy in East Asia
Hydrogen infrastructure built using existing energy sector skills and supply chains could help regions such as Taranaki, Northland and Southland grow new business opportunities based on green hydrogen and create new jobs.
The government has:
Invested $19.9 million through the Provincial Growth Fund, in the joint venture between Ballance Agri-Nutrients and Hiringa Energy to produce green hydrogen from renewable energy and water in Kapuni, south Taranaki.
PGF investment in green hydrogen(external link) — beehive.govt.nz
Co-funded the H2 Taranaki feasibility study and roadmap development, to advance uptake of hydrogen technologies in Taranaki.
H2 Taranaki feasibility study(external link) — H2 Taranaki
Funded First Gas $260,000, through the Provincial Development Unit, to undertake its Hydrogen Feasibility Study, which investigated how existing gas infrastructure could adapt to transporting hydrogen.
Hydrogen Feasibility Study(external link) — First Gas
In parallel with consultation on the Interim Hydrogen Roadmap, MBIE is working with industry on the technical design of the Regional Hydrogen Transition, the $100 million green hydrogen consumption rebate that was announced at Budget 2023. The Regional Hydrogen Transition is one of the key actions to contribute to building a market for hydrogen.
As at June 2023, the government has invested $45.5 million in hydrogen-related research through its research, science and innovation system. For example:
The New Zealand Hydrogen Council was formed in September 2018 by private and public sector organisations along with seed funding from MBIE to support the progression and uptake of low-emission hydrogen in New Zealand.
Converting heavy transport away from fossil fuels is a key step in reducing emissions. To support the uptake of hydrogen vehicles, the Energy Efficiency and Conservation Authority (EECA) has been working with several New Zealand firms on hydrogen demonstration projects through the Low Emission Vehicles Contestable Fund (LEVCF), its successor the Low Emission Transport Fund (LETF), and the government’s $3 billion ‘shovel-ready’ infrastructure programme.
The Government has:
Through the Low Emissions Transport Fund, up to $25 million a year of funding is available to support the development of low emissions technology, innovation and infrastructure. This fund builds on the now complete Low Emissions Vehicles Contestable Fund.
Low Emissions Transport Fund(external link) — Te Tari Tiaki Pūngao Energy Efficiency and Conservation Authority
MBIE’s Innovative Partnerships team has been exploring hydrogen for advanced aviation under its Clean Technology Portfolio. This has been in consultation with a number of other groups exploring hydrogen in general both inside government and in the private sector. In March 2022, we commissioned Arup to write a report to help identify a suitable airport or airports for trialling hydrogen for aviation in New Zealand and to understand the infrastructure requirements for setting up a hydrogen hub as a first step towards research and development of hydrogen as a low carbon fuel for advanced aviation.
The first part of the report – Trialling Green Hydrogen for Aviation at Airports in New Zealand. The next part will focus on infrastructure requirements at a specific location.
Trialling hydrogen for aviation would contribute to building an advanced aviation ecosystem in New Zealand and attract international research and development investment. It would also accelerate commercial uptake of new technology in New Zealand and overseas, and contribute to the decarbonisation of aviation.
Email hydrogen@mbie.govt.nz
© Ministry of Business, Innovation and Employment
https://www.mbie.govt.nz/building-and-energy/energy-and-natural-resources/energy-strategies-for-new-zealand/hydrogen-in-new-zealand/
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