Speech to the New Zealand hydrogen hui

Regional Development

Introduction

Tēnā koutou katoa.

Thank you for the opportunity to speak this morning.

It is my pleasure to welcome you all to the Hydrogen Hui, an event that brings together a diverse range of speakers and attendees from so many different sectors, all with an interest in unlocking New Zealand's hydrogen opportunities.

I would like to thank Dr Linda Wright in particular, the New Zealand Hydrogen Council, Earth Sciences New Zealand and the Ministry of Business, Innovation and Employment for their work in organising this event.

I'd also like to acknowledge and warmly welcome the international delegations in attendance. We have the Ambassador of Japan, the Deputy High Commissioner of Singapore, and the Charge d'Affaires from the European Union with us here. Welcome.

Nau mai haere mai.

Hydrogen could play a significant role in our energy mix

Hydrogen has captured the imagination of energy policymakers, investors, scientists and governments around the world. Not because it is a silver bullet, but because of its potential to become an important part of the mix as countries seek secure, affordable and lower-emissions sources of energy.

We are here today to talk about the spectrum of hydrogen development and its applications.

For New Zealand, hydrogen represents far more than a single fuel source. It is an opportunity that spans exploration, energy security, industrial development, regional growth, and future exports.

Whether it is renewable hydrogen produced from our abundant electricity resources, grey hydrogen produced using natural gas, blue hydrogen using methods like steam methane reformation or other emerging technologies - New Zealand has the potential to participate across the entire hydrogen value chain.

The Government sees hydrogen as one part of a broader energy future that supports economic growth, strengthens energy security, and builds on New Zealand's natural advantages.

Hydrogen can support regional economic development by creating new investment opportunities, strengthening industrial capability, and generating high-value jobs across New Zealand's regions.

It can also play an important role in improving energy security and resilience by diversifying our energy system and reducing reliance on imported fuels and chemical feedstocks. As global energy markets become increasingly uncertain, developing domestic energy options becomes even more important.

At the same time, hydrogen can help reduce emissions in sectors where electrification is difficult, including heavy transport, industry, aviation and marine applications. Together, these opportunities make hydrogen an important part of New Zealand's long-term energy and economic future.

I have long believed that our natural resources, developed responsibly and sensibly, can underpin economic growth and national prosperity.

Natural and orange hydrogen may prove to be another resource opportunity capable of strengthening our energy system while creating new investment and innovation opportunities for New Zealanders.

Today I want to talk about our journey to date, where emerging research and technology is taking us, and the steps this Government is taking to help where New Zealand could go next.

I'd also like to take the opportunity to acknowledge the work the industry is already doing in this area. You early thinkers and pioneers are the reason this conversation is as far along as it is.

Updating regulation to keep pace with innovation

For decades, the global conversation about hydrogen development focused on production through industrial processes.

It's only recently that our attention has turned to geological hydrogen. What was once considered a scientific curiosity is now being examined through a new lens as a potentially significant energy resource.

Here in New Zealand, interest in natural hydrogen has grown steadily. New discoveries and new research have challenged long-held assumptions about how hydrogen forms and accumulates underground.

Recent discoveries, including one of the world's few documented hydrogen seeps in Fiordland, have helped demonstrate that New Zealand may hold real potential.

At the same time, advances in understanding orange hydrogen, produced by stimulating reactions in certain rock formations, have opened another possible pathway to hydrogen production.

But while the science has moved forward, our regulatory settings have not kept pace.

The reality is that the laws we have today were not designed with natural or orange hydrogen in mind.

Over the past two years, the Coalition Government has undertaken significant work to understand how natural and orange hydrogen should be regulated in New Zealand.

We sought public feedback on a range of options, being regulation through the Crown Minerals Act, the resource management system, and bespoke legislative approaches.

The message from consultation was clear: while views differed on the preferred model, there was strong support for greater regulatory certainty.

Industry told us uncertainty around ownership and access rights was discouraging investment, while iwi and hapū emphasised the importance of appropriate participation, environmental stewardship, and recognition of rights and interests.

That uncertainty has made it difficult for projects to proceed and difficult for us to properly assess the opportunity before us.

Providing certainty on the regulatory pathway

Throughout our history, New Zealand has prospered when we have embraced innovation and backed emerging industries.

We were early adopters of hydro-electric generation. We became world leaders in geothermal development. We built expertise in sectors where our natural advantages gave us a competitive edge.

Natural and orange hydrogen may represent another such opportunity.

I want to be clear - the commercial viability of these resources in New Zealand is not yet proven. But that is exactly why we need settings that allow exploration, investment and innovation to occur.

I understand this need for certainty.

I can tell you that I intend to seek in-principle Cabinet decisions on a regulatory framework in the coming weeks. Subject to those decisions, the Government will look to progress the necessary changes after the election.

The Government's objective is clear - we want fit-for-purpose settings that enable the efficient, effective and responsible development of natural and orange hydrogen.

We want New Zealand to be a place where innovation can flourish, we want to provide certainty where uncertainty currently exists, and we want to better understand the potential of our natural resources.

Backing hydrogen innovation with targeted investment

Progressing enabling regulatory settings is only one way we intend to support innovation and investment.

Today I am pleased to announce Government support for a significant hydrogen and critical minerals project in Southland.

Through the Regional Infrastructure Fund, we will invest $15 million towards Aspiring Materials' new commercial-scale production facility.

This is a $31 million project that will bring a world-leading New Zealand technology to market.

What makes this project particularly exciting is that it demonstrates the kind of innovation that can emerge when we think about hydrogen as part of a wider industrial opportunity.

Aspiring Materials has developed a patented process that produces green hydrogen while also recovering valuable critical minerals from quarry waste - it is finding value in a material that would otherwise have limited economic use, while at the same time producing a fuel that can support our future energy system.

This project shows how hydrogen can be linked to advanced manufacturing, resource development and regional economic growth.

It brings together New Zealand ingenuity, regional investment and emerging technology in a way that has the potential to create value across multiple sectors.

It also aligns closely with our goal of developing New Zealand's critical minerals sector, which is why funding for this project is being provided from the Regional Infrastructure Fund's critical minerals allocation.

Projects like this illustrate the broader opportunity before us.

It shows that hydrogen can be more than a standalone industry. It can support the growth of new technologies, strengthen regional economies and help position New Zealand to take advantage of emerging global markets.

Most importantly, this is a project being developed here in New Zealand, using New Zealand expertise, to create opportunities for New Zealanders.

That is exactly the type of investment and innovation this Government wants to encourage, which is why I am also announcing today that the Government has set aside $30 million from the Regional Infrastructure Fund for more projects that will help grow the hydrogen sector.

When we think about hydrogen, we often focus on emissions reduction. That's certainly part of the story. But from my perspective, the bigger opportunity is what hydrogen can mean for investment, jobs, innovation, and economic development in our regions.

The purpose of this funding package is to help grow capability, support innovation, and attract private investment into projects that have the potential to create long-term economic value.

Our hydrogen package will support projects as they mature and become investment ready, helping bridge the gap between promising ideas and commercial deployment.

A number of hydrogen opportunities have been identified for potential RIF investment, and we are seeing strong interest from organisations looking to position themselves for the opportunities that hydrogen may create.

Ultimately, this is about making sure New Zealand, and particularly regional New Zealand, is well placed to benefit from emerging energy technologies.

Walk with us to unlock our hydrogen potential

Finally, let me speak directly to you as hydrogen experts and leaders - Government can unlock the gate, but it cannot walk through it for the sector.

We can provide certainty, contribute funding, create pathways and remove barriers, but the hydrogen sector must now step forward with credible plans for development, investment and deployment. Your success will depend on building a complete value chain, from discovery to production, distribution and ultimately use.

Today marks an important milestone for New Zealand's hydrogen sector. I welcome the launch of the New Zealand Hydrogen Industry Road Map later today, which brings together the collective experience, ambition and expertise of organisations from across the hydrogen value chain.

The Road Map will set out a practical pathway for developing New Zealand's hydrogen industry over the coming decade and highlights the role hydrogen could play in strengthening energy security, supporting regional development and creating new economic opportunities.

I congratulate the New Zealand Hydrogen Council and everyone involved in producing this important piece of work and look forward to continuing engagement with the sector as it progresses.

Conclusion

The world is moving quickly. Technology is opening doors that did not exist a decade ago.

Whether it is green hydrogen, geological hydrogen, orange hydrogen or the technologies and applications that sit alongside them, success will depend on industry, investors, researchers and innovators working together.

That's each and every one of you here today.

Thank you, enjoy the hui, and I look forward to seeing what the next chapter of New Zealand's hydrogen story looks like.

Nō reira, tēnā koutou, tēnā koutou, tēnā tātou katoa.