$30m Boost for New Zealand's Hydrogen Sector
The New Zealand Government has allocated $30 million from the Regional Infrastructure Fund to support hydrogen projects in the country. This funding aims to expand the country's hydrogen sector and develop skills and expertise across the wider energy industry.
Hydrogen is being considered for parts of the economy where direct electrification may be difficult or less suitable, particularly activities requiring large amounts of energy, extended operating ranges or specialised industrial processes. Heavy transport and certain heavy industries could use hydrogen where manufacturing requires very high temperatures or chemical reactions that are difficult to achieve through conventional electrification.
New Zealand's Regional Development, Resources and Associate Energy Minister Shane Jones announced the funding at a hydrogen sector hui in Christchurch, describing hydrogen as a potential addition to New Zealand's renewable energy mix that could improve energy security while creating new opportunities for businesses and investors.
The funding is expected to support projects capable of expanding the country's hydrogen sector. Kānoa, Regional Economic Development & Investment Unit will assess existing Regional Infrastructure Fund applications for possible support where they meet the package criteria, while new hydrogen applications will also be considered until the $30 million allocation has been committed.
The Government is exploring natural and rock-generated hydrogen, including white hydrogen, which occurs naturally underground, and orange hydrogen, which involves stimulating certain types of rock to generate hydrogen below the surface. Officials are examining possible regulations for these emerging forms of hydrogen production.