New Zealand lines up subsurface hydrogen regulations

The government of New Zealand has revealed plans to regulate subsurface hydrogen sources throughout next year.

Wellington intends to amend legislation to subject “white and orange hydrogen” to regulations under the country’s new Natural Environment Act, which focuses on the use, protection, and allocation of natural resources.

Resources Minister Shane Jones and RMA Reform Minister Chris Bishop said new parameters would “provide greater certainty” where exploration and investment are constrained by ambiguity.

It follows direct mentions of white and orange hydrogen in the country’s recently revealed NZ $30m ($17.8m) , aimed at regional infrastructure projects.

Jones and Bishop identified both hydrogen variants as potential low-emission sources for industrial processes, fertiliser, chemical production, fuel, and hard-to-abate sectors.

New Zealand’s cabinet has made a preliminary agreement allowing the Crown to manage access without owning resources.

It has also said the option for granting exclusive rights should remain open.

White hydrogen, commonly referred to as natural or geologic hydrogen, occurs naturally in voids beneath the Earth’s surface.

Orange hydrogen is produced by stimulating underground water–rock reactions, typically by injecting carbon dioxide-saturated water into iron-rich rock formations, causing the iron-bearing minerals to oxidise and release hydrogen.

While exploration in New Zealand is early-stage, one of its first movers, the Pacific Exploration Company, claims to have identified five “highly prospective areas” and says subsurface accumulations are “likely to be discovered” in the country.