Priority: Create an enabling regulatory environment

Action: Set enabling health and safety regulations and standards  

New uses of hydrogen are not well covered by existing regulations in the work health and safety and electricity and gas safety regimes. It is important hydrogen can be handled safely and businesses have certainty about the rules that will apply to its use.

The Ministry of Business, Innovation, and Employment (MBIE) and WorkSafe will review and update key electricity and gas safety regulations to enable safe production, storage, and use of hydrogen in near-term uses. Doing this involves a mix of changes to regulations and streamlining how standards relating to hydrogen are updated in legislation.

The Government is moving to streamline how standards are updated in regulation. The Regulatory Systems (Immigration and Workforce) Amendment Bill proposes to provide WorkSafe with the ability to make electricity and gas safety instruments, enabling technical matters to be updated more quickly rather than requiring regulatory change.  This Bill is expected to be reported back to the House in January 2025. These changes, and accompanying amendments to the relevant regulations, will enable WorkSafe to cite newly adopted hydrogen-specific international safety standards in safety instruments as a means of demonstrating compliance with regulatory obligations. MBIE will consult on proposed regulatory amendments for hydrogen around mid-2025. 

Timeframes for electricity and gas safety regulatory work

The Minister for Workplace Relations and Safety has also committed to reforming the work health and safety regulatory system, to ensure it is clear, proportionate, and effective. The Minister is aware of issues in the sector, as they were raised during her health and safety roadshow, and will take advice on how to include any further changes to health and safety that are required to enable hydrogen as part of her work programme.

Action: Review regulatory barriers to uptake of low-emissions heavy vehicles

Decarbonisation of heavy vehicles is at an earlier stage than light vehicles both globally and in New Zealand. Some companies are exploring the merits of low and zero-emissions heavy vehicles and of different technologies, including electrification and alternative fuels such as hydrogen.

A key role for the Government is to remove regulatory barriers so they can adopt these options. For example, our current vehicle dimension and mass rules can create barriers to getting hydrogen heavy trucks on our roads because hydrogen tanks on heavy vehicles can cause them to exceed volume constraints. There are also no inspection or crashworthiness requirements specific to hydrogen-fuelled vehicles. It is important to ensure our vehicle requirements are aligned with leading international standards and deviate only where the New Zealand context requires it.

There are opportunities to review barriers to the uptake of low-emissions heavy vehicles, including hydrogen heavy vehicles, as part of work planned by the Ministry of Transport to review the vehicle regulatory system to ensure our domestic rules are fit for purpose. Any change to the system would need to be balanced against the increased wear and tear on roads and bridges associated with heavier vehicles, and related higher maintenance costs.

Action: Enable blue hydrogen by reducing regulatory barriers to carbon capture and storage

The Government wants to enable markets to have a level playing field of technologies so they can choose the right solution for their needs. Blue hydrogen, produced by steam reforming natural gas with carbon capture and storage, may be cheaper to produce than green hydrogen where there is existing steam reforming plant.

The Government consulted on a regime for carbon capture, utilisation, and storage (CCUS) in July 2024. Cabinet agreed in August 2024 to establish a clear enabling framework for CCUS, including with a view to reducing the costs of gas production, as part of the comprehensive response to the energy security of supply situation. Policy work is progressing on the design of this framework.

Timeframes for work to enable exploration for natural hydrogen and the development of orange hydrogen

Action: Enable exploration for natural hydrogen and the development of orange hydrogen

New Zealand has prospects for both naturally-occurring hydrogen (natural hydrogen) that could be extracted, and for artificially stimulated geological hydrogen (orange hydrogen). The Government has committed to ensure energy settings allow for the exploration of natural geological hydrogen in New Zealand, to maximise future energy resilience.

The Government has work underway to clarify regulatory settings and assess if changes are needed to enable exploration for natural hydrogen and development of orange hydrogen. Any changes required to settings will begin in mid-2025.

Timeframes for work to enable exploration for natural hydrogen and the development of orange hydrogen

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