New Zealand Government Explores Regulatory Options for Natural and Orange Hydrogen Development
Key Ideas
- The New Zealand Coalition Government is seeking feedback on regulatory options for the development of natural and orange hydrogen to boost economic growth and energy resilience.
- Minister Shane Jones highlights the significant potential of natural and orange hydrogen in reducing reliance on imported fossil fuels and benefiting hard-to-electrify industries.
- Various regulatory proposals, including amending the Crown Minerals Act or treating hydrogen as a natural resource under existing legislation, are being considered to create a clear framework for investment decisions.
- Consultation is open until July 4, 2025, to gather input on the best regulatory approach, with a focus on working collaboratively with all stakeholders, including Māori, to lead in natural and orange hydrogen development.
The Coalition Government in New Zealand is actively exploring regulatory options for the development of natural and orange hydrogen resources. The Resources Minister, Shane Jones, emphasizes the transformative potential of natural and orange hydrogen in driving economic growth, enhancing energy resilience, and fostering innovation, especially in industries that are challenging to electrify. The government document released for consultation rejects the idea of blanket Crown ownership of all hydrogen in its natural form and instead proposes high-level regulatory strategies to manage the development of these resources under existing or new legislation.
Shane Jones underlines the importance of recognizing the valuable opportunities presented by natural and orange hydrogen, citing recent discoveries like hydrogen seeps in Fiordland. The emergence of technologies for producing orange hydrogen through mineral intervention underground further highlights New Zealand's potential in this area, attracting global interest.
To facilitate the realization of this potential, a clear and definitive regulatory framework is deemed essential. The existing Crown Minerals Act is evaluated for its suitability in governing natural hydrogen development, with conclusions pointing towards the need for updated regulations to provide certainty for investors.
The Minister is inviting feedback on potential approaches, including amending the Crown Minerals Act, integrating hydrogen into the Resource Management Act, or devising a new allocation system. Flexibility is encouraged, with a focus on fostering a regulatory environment conducive to investment and innovation without considering the nationalization of natural hydrogen.
Stakeholder consultation is pivotal in this process, with a deadline set for July 4, 2025, to gather diverse perspectives and recommendations. The government aims to collaborate effectively with all interested parties, including Māori groups, to establish New Zealand as a global leader in natural and orange hydrogen exploitation. The consultation document and submission details are available on the MBIE website.
Topics
Oceania
Innovation
Energy Sector
Economic Growth
Resource Management
Energy Resilience
Consultation Process
Regulatory Options
Crown Ownership
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