The Government has set aside $30 million in the Regional Infrastructure Fund for projects that will help grow the hydrogen sector, Regional Development, Resources, and Associate Energy Minister Shane Jones says.

Mr Jones made the announcement at a hydrogen sector hui in Christchurch today.

“Hydrogen has huge potential to become a valuable part of a diversified and resilient renewable energy future for New Zealand,” Mr Jones says.

“Hydrogen could play an important role in reducing emissions in parts of the economy where electrification isn’t the best option. This could be in heavy transport where the range and weight of a battery can be a problem, and heavy industry such as where specific chemical reactions or high temperatures are needed.”

Mr Jones says New Zealand needs a range of energy solutions to support economic growth and improve resilience.

“Hydrogen has the potential to complement our existing renewable energy resources and create new opportunities for industry and innovation.

“Hydrogen also provides another option for improving energy security, strengthening resilience and supporting the development of new energy industries.

“This hydrogen package will back projects that will grow New Zealand’s hydrogen sector and build capability across the wider energy sector,” Mr Jones says.

The Government has already signalled its support for hydrogen development through theHydrogen Action Plan, as well as consulting on proposed regulatory options for the development of white and orange hydrogen in New Zealand.

White or natural hydrogen occurs naturally underground, and orange hydrogen is produced through processes that stimulate hydrogen generation within certain rocks.

"New Zealand has the potential to participate in the emerging white and orange hydrogen industry, but investment requires clear and predictable rules. I understand the need for certainty and intend to seek in-principle Cabinet decisions on a regulatory framework in the coming weeks,” Mr Jones says.

“The hydrogen package will back innovation and create opportunities for private investment, helping position New Zealand – and especially our regions – to take advantage of emerging energy technologies to strengthen our energy sector and our future economy.”

Kānoa – Regional Economic Development & Investment Unit officials will consider existing Regional Infrastructure Funding applications for support from the hydrogen package if they meet the criteria, and will consider new hydrogen applications until the package is fully allocated.