Background
New Zealand's hydrogen sector received further attention last week. At the New Zealand Hydrogen Hui, the Hon Shane Jones, Minister for Resources, unveiled announcements that build on the Government's:
- Hydrogen Action Plan released in November 2024; and
- Regulatory Proposals for Natural and Orange Hydrogen Development discussion document released in May 2025 (which we discussed in our previous article "Regulatory proposals for natural and orange hydrogen development").
These developments offer fresh insight into the Government's evolving hydrogen policy and signal a clear commitment to accelerating the sector's growth.
The Minister highlighted emerging opportunities associated with hydrogen resources.[1] He outlined a vision for hydrogen as a key part of New Zealand's broader energy and economic future, emphasising hydrogen's potential contribution to regional development, industrial growth, energy security and future exports.
Two noteworthy announcements we consider below:
- The Government intends to seek in-principle Cabinet decisions in the coming weeks (which suggests they are aiming to do so before the House rises on 24 September) on a regulatory framework for natural and orange hydrogen; and
- The Government will commit $45 million to hydrogen-related projects through the Regional Infrastructure Fund.
Regulatory certainty on the horizon?
At the Hydrogen Hui, Minister Jones noted that New Zealand's existing laws were not developed with natural and orange hydrogen in mind. The emergence of these potential energy sources has created uncertainty around ownership, access rights, consenting requirements and the interaction between hydrogen resources and underlying land interests. He also acknowledged feedback from stakeholders emphasising the need for any regulatory framework to provide appropriate environmental oversight, recognise the interests of iwi and hapū, and support responsible resource development.
Against that backdrop, the Government is actively considering how natural and orange hydrogen should be regulated. Minister Jones announced that in-principle Cabinet decisions on a dedicated framework for hydrogen extraction and utilisation are expected in the coming weeks.
Importantly, the Minister signalled that the Government does not intend to regulate hydrogen in the same manner as petroleum under the Crown Minerals Act 1991. Rather than vesting ownership of the resource in the Crown, the preferred approach would be to incorporate regulation into the Planning and Natural Environment Bills, which are intended to pass this September 2026 and replace the Resource Management Act 1991 framework.
While the exact details remain to be seen and worked through, the emerging approach appears more closely aligned with the regulatory treatment of other subsurface resources, such as water and geothermal resources, where extraction rights can exist across multiple landholdings without Crown ownership of the underlying resource.
In our view, regulation of hydrogen could be achieved in a reasonably straightforward manner under the processes set up in the Bills. National instruments and standardised provisions provide the opportunity for the Government to prescribe a clear, nationally consistent approach for the enablement and management of the extraction of hydrogen.
$45 million for hydrogen growth
The Government announced a $45 million funding package designed to accelerate hydrogen sector development, comprising:
- $30 million for future hydrogen projects, from the Regional Infrastructure Fund; and
- $15 million to Aspiring Materials' new commercial-scale critical minerals and hydrogen project in Southland.
Aspiring Materials attracted government support for its development of a patented process that produces green hydrogen by separating valuable minerals from quarry waste. Minister Jones noted that projects like this are key to cutting emissions in hard-to-abate sectors where electrification falls short, especially heavy transport and heavy industry.
The New Zealand Hydrogen Council revealed its hydrogen industry roadmap (Hydrogen's Role in Fuelling New Zealand's Future) at the Hydrogen Hui, highlighting different potential hydrogen projects that could be candidates for future Government hydrogen investment.
Conclusion
The announcements at the Hydrogen Hui reinforce this Government's intention to position hydrogen as both a decarbonisation tool and an economic growth engine. As the potential of New Zealand's hydrogen resource becomes better understood, the Government appears increasingly focused on ensuring that regulatory settings keep pace with the sector's potential.
A dedicated regulatory framework, paired with targeted funding, would be a useful step towards giving New Zealand's hydrogen sector the conditions it needs to develop and compete for investment.