Regional Development Minister, Shane Jones, has announced a grant of up to $17.8 million from the Regional Infrastructure Fund to accelerate exploratory research work into the commercial viability of hydrogen resources in Southland.
Minister Jones said the investment is about improving the understanding of hydrogen and whether it can provide New Zealand another source of energy at a time when global access to energy resources is increasingly uncertain.
“Hydrogen presents an exciting economic and emerging energy opportunity. We need to better understand how hydrogen could support New Zealand’s economic growth, strengthen energy security, and build on our natural advantages,” Mr Jones says.
“The research will help establish whether New Zealand’s natural hydrogen resources can be commercially developed. This is an important step towards building a clearer picture of how hydrogen can contribute to our economic prosperity.”
The project, led by Earth Sciences New Zealand in collaboration with University of Canterbury and University of Auckland, is a two-phase early-stage natural and orange hydrogen exploration programme, beginning with a drill site near Bluff in Southland. It will also include investigations into identifying a prospective North Island natural hydrogen drilling location.
“This RIF investment aims to unlock long-term economic value in our regions through the innovative use of New Zealand natural resources,” Mr Jones says.
“The research data from the project is intended to be open access, improving our collective understanding of New Zealand’s natural hydrogen potential and allowing government, researchers and industry to make better-informed decisions about regulation, future exploration, and investment.”
Funding for the project comes from the Government’s $30 million RIF hydrogen package announced in August to help grow the hydrogen sector.
