- Hon Shane Jones
The Coalition Government is seeking feedback on proposed regulatory options for the development of naturally occurring and orange hydrogen, an overlooked resource that could drive economic growth, energy resilience and innovation.
A discussion document launched for consultation today rules out a blanket approach to Crown ownership of all hydrogen in its natural state and presents high-level proposals for how the development of the resource could be managed under existing or new legislation.
"Natural and orange hydrogen could be game-changers for New Zealand's energy sector, particularly for our hard-to-electrify industries and in reducing our reliance on imported fossil fuels," Resources Minister Shane Jones says.
"The development of this resource has largely been overlooked due to misconceptions that accumulations are rare. Recent discoveries, including one of the world's few documented hydrogen seeps in Fiordland, tell us more about how it forms in different geologies.
"We are also a prospective destination for the development of orange hydrogen which is created with intervention utilising certain minerals below ground. While these technologies are still emerging, global interest in exploring New Zealand's potential is growing. To realise the opportunity, we need a clear and certain regulatory framework that sets us up for success."
Developing a regulatory regime advances a coalition commitment between New Zealand First and the National Party to ensure the Government's energy settings allow for the exploration of natural hydrogen to maximise future energy resilience.
"My officials have explored how the Crown Minerals Act 1991 (CMA) in its current form could be used to develop naturally occurring hydrogen and have determined that the status quo would not provide the clear and certain regulatory pathway operators would need to make investment decisions," Mr Jones says.
"I am now seeking feedback on proposals that include regulating natural and orange hydrogen as a mineral through an amendment to the CMA; treating it as a natural resource under the Resource Management Act 1991; or a new allocation regime that could be developed.
"Alternative ideas and regulatory options that may be better suited for this emerging sector are also welcome. I will be very clear, however, that the Crown is not considering the nationalisation of all hydrogen in its natural state.
"My objective here is to get the right settings in place to enable New Zealand to be a world leader in realising the potential of natural and orange hydrogen. We recognise the varied interests in this space, particularly those of Māori, and want to work collaboratively and productively on a pathway forward."
Consultation closes on 4 July 2025. To see the consultation document and for more information on how to make a submission go to the MBIE website.
