New Zealand’s Hydrogen Action Plan, announced by the Government just ahead of the Christmas-New Year break, is expected to provide benefits to the heavy transport sector.

Energy Minister Simeon Brown and Climate Change Minister Simon Watts announced the plan which sets out key steps to unlock private sector investment in hydrogen energy and support New Zealand’s transition to a low-emissions economy.

“New Zealand is fortunate to have abundant renewable energy potential, which provides a strong foundation to electrify much of our economy,” Mr Brown says.

“However, some parts of the economy are not practical or possible to electrify, such as heavy transport and industry – this is where hydrogen could take a major role in reducing emissions while keeping our economy growing.

“The Government is committed to enabling the hydrogen sector to be part of our energy mix through removing regulatory barriers and supporting international trade and investment.

“The Action Plan sets out the actions the Government is taking to lower regulatory barriers and enable industry to further develop hydrogen energy solutions which will help power Kiwi businesses into the future.”

The four priority areas in the Action Plan focus on creating an enabling regulatory environment as well as reducing barriers for consenting hydrogen projects through Electrify NZ and RMA reform work programmes.

The Plan will also promote a cost-effective and market-led transition to a low-emissions economy and support access to international investment and markets.

The Hydrogen Action Plan delivers against one of the priorities in the coalition agreement between the National and New Zealand First parties to plan for transitional low carbon goals, including the infrastructure needed to increase the use of methanol and hydrogen to achieve sovereign fuel resilience.

Climate Change Minister Simon Watts says that hydrogen has potential to reduce New Zealand’s greenhouse gas emissions, particularly in hard-to-abate industries.

“Affordable and abundant clean energy is a key pillar to the Government’s climate strategy. Hydrogen could play a key role alongside the increasing electrification of our economy to help reduce our emissions and meet our climate change goals,” Mr Watts says.

“I am excited by hydrogen’s potential to support New Zealand’s transition to a low-emission economy, and I look forward to continuing to engage with the sector on hydrogen opportunities for New Zealand.”