September 17th, 2024
In a bold move towards energy resilience, New Zealand's Resources Minister, Shane Jones, has called for the development of the country's natural hydrogen resources to be free from Treaty of Waitangi claims entanglements, positioning it as a critical development for the benefit of all New Zealanders.
The big picture: A unified approach to energy
Jones is advocating for regulatory clarity to foster the development of geological hydrogen as a crucial component of New Zealand's strategy for energy resilience. He expressed his concerns over recent discussions, stating, “I am disappointed to hear special iwi pleading from Te Pāti Māori co-leader Debbie Ngarewa-Packer. Hydrogen is a resource that must not be embroiled in a new bout of Waitangi Tribunal ownership claims. Climate change challenges have no respect for ethnic divides.”
Highlighting the potential of hydrogen, Jones noted, “Commercial natural hydrogen production is in its infancy worldwide but it certainly appears to offer advantages over other types of energy production. It potentially has lower production costs and lower full life-cycle carbon emissions than other types of fuel and could be a game-changer for New Zealand.”
Driving the news: Legal and regulatory considerations
The minister highlighted the infancy of commercial natural hydrogen production worldwide but noted its potential advantages, including lower production costs and full life-cycle carbon emissions compared to other fuels. With New Zealand possessing deposits of naturally occurring hydrogen, Jones advocates for national exploitation of these resources to diminish reliance on overseas fuels and bolster a reliable and resilient energy sector.
Jones is seeking legal advice to determine if natural hydrogen falls under Crown property according to the Crown Minerals Act (CMA), amidst uncertainties about the Act's application to natural hydrogen and how it should be defined and treated within it. This step is crucial for shaping regulatory decisions necessary for the resource's development.
What's next: Legislative and strategy alignment
As interest in natural hydrogen surges in New Zealand, Jones underlines the importance of evaluating whether existing regulatory settings support the prospecting, exploration, and mining of natural hydrogen from economic, environmental, and health and safety standpoints. Collaborating closely with the Energy Minister, he aims to ensure that initiatives concerning natural hydrogen align with broader hydrogen and energy strategies.
Jones announced that any necessary legislative changes to the Crown Minerals Act to facilitate natural hydrogen development would be undertaken within this parliamentary term, marking a significant commitment to advancing New Zealand's energy resilience and independence.
Jones's stance signals a proactive approach to securing New Zealand's energy future, framing natural hydrogen as a potentially transformative resource for the nation's energy landscape.