The Government has earmarked $30 million from Regional Infrastructure Fund (RIF) to support New Zealand’s hydrogen sector, while announcing the first investment – $15m for a Southland project that will produce green hydrogen and critical minerals.
Regional Development, Resources and Associate Energy Minister Shane Jones announced the package at a hydrogen sector hui in Christchurch, saying hydrogen could play an important role where battery-electric technology is less practical.
“Hydrogen has huge potential to become a valuable part of a diversified and resilient renewable energy future for New Zealand.
“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,” Jones says.
The first project to receive support is a $31m commercial-scale plant being developed by Aspiring Materials in Southland. The company has developed a patented process that extracts critical minerals from quarry waste while producing green hydrogen through electrolysis powered by renewable electricity.
Jones says the project demonstrates how hydrogen could support broader industrial development.
“It is home-grown technology with the potential to produce green hydrogen while undertaking the business’s core task of creating value from critical minerals and essential materials that are used daily across Kiwi industries.”
The $15 million investment, which will comprise a mix of loan and equity funding, comes from $80 million ringfenced within the RIF for critical minerals projects.
Jones says the wider $30 million hydrogen package will support projects that strengthen the sector and encourage private investment.
“Hydrogen has the potential to complement our existing renewable energy resources and create new opportunities for industry and innovation.
“This hydrogen package will back projects that will grow New Zealand’s hydrogen sector and build capability across the wider energy sector.”
The Government says the package builds on its Hydrogen Action Plan and follows consultation on regulatory options for naturally occurring white hydrogen and orange hydrogen.
Jones says the Government intends to seek in-principle Cabinet decisions on a regulatory framework in the coming weeks to provide greater certainty for investors.
Kānoa – the Regional Economic Development & Investment Unit – will assess both existing and new Regional Infrastructure Fund applications for support under the hydrogen package until the $30 million allocation has been fully committed.
