New Zealand
Green Hydrogen Vision
New Zealand's green hydrogen vision is built upon its abundant renewable energy resources and its commitment to achieving net-zero carbon emissions by 2050. With over 80% of its electricity already generated from renewable sources such as hydropower, wind, and geothermal energy, New Zealand is uniquely positioned to produce green hydrogen through water electrolysis powered by clean electricity. The country sees green hydrogen as a critical tool to decarbonize hard-to-abate sectors, including heavy transport, aviation, shipping, and industry, where direct electrification is not feasible. By leveraging its renewable energy surplus, particularly during periods of low demand, New Zealand aims to produce cost-competitive green hydrogen both for domestic use and export to key markets like Japan, South Korea, and other Asia-Pacific nations.
This strategic approach not only supports global decarbonisation efforts but also strengthens New Zealand’s position as a leader in the emerging hydrogen economy. The government and industry stakeholders are working collaboratively to develop the necessary infrastructure, including production facilities, refueling stations, and storage solutions, while fostering innovation and partnerships to drive down costs. Pilot projects, such as the Taranaki Hydrogen Hub, highlight New Zealand's commitment to integrating hydrogen into its energy system, creating jobs, and unlocking economic opportunities. Through green hydrogen, New Zealand envisions a sustainable energy future that enhances energy security, supports its transition away from fossil fuels, and reinforces its role as a global leader in renewable energy and climate action.
National Strategy
New Zealand's 2023 Interim Hydrogen Roadmap positions hydrogen as a key element in the country's transition to a net-zero emissions economy by 2050. Hydrogen is identified as a solution for decarbonising hard-to-abate sectors like heavy transport, aviation, and industrial processes where electrification alone cannot meet the demand. The roadmap highlights the need for significant investments in renewable energy infrastructure to support green hydrogen production, leveraging New Zealand's already renewable energy sector. The strategy underscores the role of hydrogen in improving energy resilience, reducing emissions, and fostering economic development while balancing domestic needs and potential export opportunities. International cooperation with countries like Japan, Germany, and Singapore is vital for building capabilities and unlocking new markets.
To ensure this vision materialises, the roadmap proposes a staged approach with early initiatives focusing on demonstration projects, refining regulations, and incentivising demand through financial support. However, the government is cautious about fostering an export market once domestic energy security is assured. It also emphasises continued engagement with stakeholders and technological development to monitor progress and address uncertainties in hydrogen adoption.
Capacity and Capacity targets
The capacity targets for hydrogen production include 1.5 gigawatts (GW) of electrolyser capacity by 2035, increasing to 4.5 GW by 2050. These targets correspond to an electricity demand of 11.5 TWh in 2035 and 33.9 TWh by 2050, requiring significant renewable generation build-out to meet the needs. The roadmap anticipates hydrogen production will emerge from centralised plants, onsite industrial output, and smaller decentralised facilities.
Impact Targets
Hydrogen's impact is projected to reduce emissions substantially, especially in transport and industrial applications. By 2035, hydrogen could substitute fossil fuels and reduce emissions by 0.7 Mt CO₂e annually, rising to 4.66 Mt CO₂e annually by 2050. This accounts for approximately 15% of 2021's energy emissions, primarily from transport. Additional reductions could come from its use in industrial feedstocks (e.g., fertiliser, steel, and methanol production) and potential export benefits to other nations.
Policy Spotlight
- Green hydrogen fast refuelling station - Halcyon, New Zealand's leading green hydrogen producer, opened the country's first green hydrogen fast refuelling station on April 22, 2024. The station is located at Wiri, South Auckland.
- Hydrogen safety standards - New Zealand adopted 13 international hydrogen-related equipment safety standards in July 2024.
- Hydrogen Ecosystem Update - GNS Science released the 2024 Annual NZ Hydrogen Ecosystem Update, which explores the current state of the hydrogen ecosystem in New Zealand and globally.
Financing
The government has committed significant funding to jumpstart hydrogen projects. To date, $88 million has been allocated for hydrogen-related research, demonstration trials, and commercial projects. Budget 2023 introduced $100 million for the Regional Hydrogen Transition consumption rebate and $30 million for clean heavy vehicle grants. However, public financial involvement in an export market will only be limited once sufficient renewable electricity generation capacity is secured. Future financing is expected to involve private sector investments and international collaborations to bridge the funding gaps for large-scale projects.
Government green hydrogen lead
Ministry of Business, Innovation and Employment (MBIE)