Hydrogen economic modelling results
Published: 9 Aug 2023Report prepared by Ernst & Young providing analysis of the potential outcomes associated with different green hydrogen futures in New Zealand.
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New Zealand’s hydrogen roadmap
MBIE is currently developing a roadmap to provide direction on the future role of hydrogen in Aotearoa New Zealand.
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The roadmap will inform the New Zealand Energy Strategy, which is due to be finalised by the end of 2024.
About hydrogen
Hydrogen is a clean energy carrier that emits minimal or no greenhouse gases when used. Like oil or gas, hydrogen can be produced and then stored for when energy is needed or transported and sold.
- Energy is required to produce hydrogen. This can either be energy from renewable sources or energy from fossil fuels. Fossil gas is currently the main source of hydrogen production internationally, followed by coal.
- Hydrogen produced from renewable sources is commonly called green hydrogen. The most proven method is electrolysis, which uses electricity to separate hydrogen and oxygen from water. Green hydrogen is a clean energy source when produced this way. The Government is mainly interested in exploring the potential of green hydrogen for New Zealand, but we are also open to future low and zero emissions production sources such as naturally occurring hydrogen and biogenic hydrogen.
With the right infrastructure, hydrogen can be used to power cars, trucks, planes, ships, buildings and factories. It can be used to store electricity for peak winter electricity demands, to generate off-grid electricity, and decarbonise industrial process heat.
The Hydrogen Roadmap
The Government committed to developing a Hydrogen Roadmap as part of the Emissions Reduction Plan in 2022. The roadmap will outline the Government’s position on the future role of hydrogen in New Zealand and set out the pathway for establishing a hydrogen industry in Aotearoa New Zealand that will support the transition to net zero 2050.
It 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.
There are opportunities for green hydrogen to reduce emissions in areas that are hard to electrify, support regional economic transitions, and underpin our energy security and resilience.
MBIE is is seeking feedback on the Interim Hydrogen Roadmap, which:
- sets out the Government’s initial position on the opportunities for hydrogen in New Zealand’s energy transition
- outlines actions the Government is taking to establish a sustainable and safe hydrogen industry in Aotearoa New Zealand
- signals areas where the Government plans to do further work.
The consultation is open for submissions until 2 November 2023, 5pm.
For more information or to have your say, visit:
Feedback received will be used to develop the final Hydrogen Roadmap which will be finalised alongside the New Zealand Energy Strategy in 2024.
Hydrogen economic modelling results report
This report was prepared to inform the Interim Hydrogen Roadmap, and explores the possible use cases for hydrogen in New Zealand’s energy transition out to 2050. It summarises the results of modelling for five different scenarios for hydrogen deployment, in order to demonstrate potential supply and demand volumes for hydrogen, likely costs and electricity generation and water input requirements. It also provides an assessment of how hydrogen could contribute to objectives around emissions abatement and decarbonisation, economic development and energy security and resilience.
Last updated: 09 August 2023