Govt Invites Public Feedback on Revolutionary Hydrogen Sector Plans

The New Zealand Coalition Government has opened a public consultation on transformative regulatory proposals to govern the exploration and development of two promising energy resources: naturally occurring hydrogen and the emerging field of orange hydrogen. These resources have the potential to significantly boost the nation’s energy security, reduce reliance on fossil fuel imports, and propel New Zealand toward a more sustainable energy future.

Harnessing Untapped Hydrogen Potential

Resources Minister Shane Jones announced the release of a comprehensive discussion document that seeks stakeholder and public feedback on high-level regulatory options. The initiative is driven by recent global advancements and local discoveries that have challenged long-standing assumptions about hydrogen accumulation and viability.

“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,” Minister Jones stated. “Recent scientific findings, such as a documented hydrogen seep in Fiordland, suggest that our geology may be more hospitable to these energy sources than previously thought.”

Naturally occurring hydrogen—also referred to as white or gold hydrogen—is found underground and can be harvested with minimal carbon emissions. Orange hydrogen, by contrast, is generated through geological intervention involving mineral reactions in subterranean environments. Though the technologies for orange hydrogen are still emerging, international interest in New Zealand as a prospective site for development is gaining momentum.

Regulatory Options Under Review

To capitalize on this opportunity, the government is proposing a set of regulatory options to create a clear and stable framework for industry investment. The discussion document outlines several possibilities, including:

• Amending the Crown Minerals Act 1991 (CMA): One approach would be to formally classify natural and orange hydrogen as minerals, thereby enabling them to be governed under the existing legislative framework for mineral resources.

• Resource Management Act 1991 (RMA): Another option is to treat hydrogen development as a natural resource issue under the RMA, focusing more on environmental and local government considerations.

• A New Allocation Regime: Alternatively, a bespoke legislative framework could be developed specifically for hydrogen, offering tailored regulation and governance structures designed to foster this new energy sector.

Jones emphasized that while the government is committed to enabling development, it is not pursuing blanket nationalization of hydrogen resources. “I will be very clear, however, that the Crown is not considering the nationalisation of all hydrogen in its natural state,” he confirmed.

Coalition Commitments and Future Outlook

This initiative is also a direct response to a coalition agreement between the National Party and New Zealand First to modernize the country’s energy policies. The government has acknowledged that the current CMA does not adequately provide the certainty investors need.

“My officials have explored how the 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,” said Jones.

Māori Engagement and Collaboration

A crucial element of the consultation is the inclusion of Māori perspectives, given the cultural and land rights implications. The government has expressed a strong desire to collaborate with iwi and Māori stakeholders throughout the regulatory development process.

“We recognise the varied interests in this space, particularly those of Māori, and want to work collaboratively and productively on a pathway forward,” Jones added.

How to Participate

The public consultation is now open, with stakeholders from industry, iwi, environmental groups, and the general public encouraged to submit feedback on the proposed options and suggest alternative ideas that may better serve this burgeoning sector.

By taking proactive steps today, New Zealand aims to secure its position as a global leader in sustainable hydrogen development—balancing innovation, economic growth, and environmental responsibility.