Regional Hydrogen Transition

The Government announced $100m to deliver the Regional Hydrogen Transition in Southland as part of Budget 2023.

Just transition regions will benefit from greater economic, social and environmental resilience through the Regional Hydrogen Transition. Hydrogen has the potential to play an important role in the transition to a low emissions economy.

The Regional Hydrogen Transition was developed jointly with Southland’s regional leaders and iwi in response to the planned closure of the New Zealand Aluminium Smelter. The Regional Hydrogen Transition was developed in response to the recommendations of the clean energy workstream of the Southland just transition work plan and will have a strong focus on benefiting just transition regions.

The Regional Hydrogen Transition initiative will support early consumers of green hydrogen in New Zealand by bridging the price gap between hydrogen and fossil fuel alternatives. The rebate mechanism to deliver this outcome will be finalised following industry engagement. The goals of the initiative are:

  • Decarbonising hard-to-abate sectors
  • Economic diversification
  • Supporting the wider goals of the just transition

Alongside these regional goals, the initiative has been designed to support delivery of the Hydrogen Roadmap, due for release in July. A prospectus for detailed industry engagement will be released alongside the draft Roadmap.

The Ministry anticipates conducting a subsequent competitive process to select participants in early 2024.

If you have any questions, please email

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Last updated: 25 May 2023