Regulatory proposals for natural and orange hydrogen development

About the consultation

Hydrogen is the lightest and most abundant element in the universe. It can carry and store energy like a battery. This energy can then be used to produce emissions-free electricity through a fuel cell to power machines or combusted for heat and energy. It can be used to reduce emissions in hard-to-electrify industries, maintain and build high-value economic activity, and support energy security and resilience.

Hydrogen can be produced through a range of methods and New Zealand is a prospective destination for the potential development of natural and orange hydrogen.

Natural hydrogen is generated naturally through various mineral sources and pathways in the earth’s crust. Orange hydrogen is generated by pumping water and carbon dioxide into particular minerals below ground to stimulate hydrogen gas creation.

While the technologies to enable this are still emerging, global interest in exploring the potential for natural and orange hydrogen in New Zealand as both a new resource and an energy source is growing.

To realise the opportunity, we need a clear and certain regulatory framework that sets New Zealand up for success.

What we are proposing and seeking feedback on

The discussion document presents 2 high-level proposals for feedback:

• Option 1: Including hydrogen in the definition of a mineral under the Crown Minerals Act 1991 (CMA) to regulate it as a mineral. This would mean that, where mineral rights are privately owned (or owned by iwi under a customary marine title) then the owner would have control over its development. Where mineral rights are held by the Crown, the right to access the minerals would be allocated under the CMA. Other regulatory requirements, for example environmental consents, would apply in both circumstances.
• Option 2: Excluding hydrogen in the definition of a mineral under the CMA and regulating it as a non-mineral natural resource. This could mean that, by default, hydrogen is allocated, and its effects managed primarily through the Resource Management Act 1991 (RMA) or a new allocation regime. This approach would allow hydrogen to be developed with a wider focus than the purpose of the CMA – such as reducing New Zealand’s emissions and improving energy security and resilience, for instance. 

You are welcome to suggest approaches outside of what is in the discussion document. A full range of feasible options will be considered following consultation.

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