Ownership rights around New Zealand’s natural hydrogen resources are coming under scrutiny with the coalition Government seeking legal advice around potential Treaty claims.
Resources Minister Shane Jones says natural hydrogen could be a “game-changer” as a new source of energy for New Zealand and he’s seeking regulatory certainty for those keen to develop the industry here.
He says the resource “must not be embroiled in a new bout of Waitangi Tribunal ownership claims”.
“The question of the ownership of any natural hydrogen in New Zealand must first be settled and I am seeking legal advice on whether natural hydrogen is considered Crown property under the Crown Minerals Act (CMA).”
It follows comments by Te Pāti Māori co-leader Debbie Ngarewa-Packer who told 1News that Maori have rights and interests to “absolutely every renewable energy”.
Ngarewa-Packer is also seeking legal advice around the issue.
“Regulations need to acknowledge that the rights and interests of these resources have and sit with tangata whenua,” she says.
Jones says the coalition Government is committed to ensuring energy settings allow for the exploration of natural hydrogen “to maximise New Zealand’s future energy resilience”.
“Commercial natural hydrogen production is in its infancy worldwide but it certainly appears to offer advantages over other types of energy production.
“It potentially has lower production costs and lower full life-cycle carbon emissions than other types of fuel and could be a game-changer for New Zealand,” he says.
Preliminary legal advice is that it is unclear whether and how the CMA applies to natural hydrogen.
If the Act does apply to natural hydrogen there are questions as to how natural hydrogen should be defined and treated under it.
“This is important for regulatory decisions that will need to be taken,” Jones says.
“As interest in natural hydrogen grows in New Zealand, we need to consider whether the existing regulatory settings enable prospecting, exploration and mining and if they are appropriate from an economic, environmental and health and safety perspective.
“The timing of this work programme is based on being able to progress other important portfolio priorities and ensure a considered approach can be undertaken to this emerging resource,” he says.
Jones will work closely with Energy Minister Simeon Brown on the issue and says any necessary legislative changes to the Crown Minerals Act would be made this parliamentary term.
