The Government is providing up to $17.8 million for research into whether natural hydrogen resources in Southland can be commercially developed.
The Regional Infrastructure Fund grant will support a two-phase exploration programme led by Earth Sciences New Zealand in collaboration with the University of Canterbury and University of Auckland.
Initial work will include drilling near Bluff, along with investigations to identify a prospective natural hydrogen drilling site in the North Island.
Regional Development Minister Shane Jones says the project will help determine whether hydrogen could provide New Zealand with another domestic energy source.
“This investment is about improving our understanding of hydrogen and whether it can provide New Zealand another source of energy at a time when global access to energy resources is increasingly uncertain,” Jones says.
“Hydrogen presents an exciting economic and emerging energy opportunity.
“We need to better understand how hydrogen could support New Zealand’s economic growth, strengthen energy security, and build on our natural advantages.”
White and orange hydrogen investigated
The programme will investigate white hydrogen, also known as natural hydrogen, which occurs naturally underground.
It will also study orange hydrogen, which is produced through reactions involving certain rock formations.
Both forms are being explored internationally as potential lower-emissions hydrogen sources for industrial processes, fertiliser and chemical production, fuel and sectors that are difficult to electrify.
Potential applications include heavy transport, aviation, maritime operations and heavy industry.
“The research will help establish whether New Zealand’s natural hydrogen resources can be commercially developed,” Jones says.
“This is an important step towards building a clearer picture of how hydrogen can contribute to our economic prosperity.”
The project’s research data is intended to be made publicly available to government agencies, researchers and industry.
Jones says this could support future decisions about regulation, exploration and investment.
“This RIF investment aims to unlock long-term economic value in our regions through the innovative use of New Zealand natural resources,” he says.
“The research data from the project is intended to be open access, improving our collective understanding of New Zealand’s natural hydrogen potential.”
The funding comes from a $30m Regional Infrastructure Fund hydrogen package announced in August to support development of the sector.
