Funding for research into hydrogen resources
New Zealand commits $30 million to accelerate hydrogen research in Southland and the North Island, aiming to assess commercial viability and energy security benefits.
The New Zealand Government has allocated up to $30 million from the Regional Infrastructure Fund to advance exploratory research into hydrogen resources, with a focus on Southland. Regional Development Minister Shane Jones stated the funding aims to evaluate whether hydrogen can serve as an additional energy source amid global supply uncertainties. The investment seeks to determine the commercial potential of New Zealand’s natural hydrogen reserves while supporting economic growth and energy security.
The project, led by Earth Sciences New Zealand in partnership with the University of Canterbury and the University of Auckland, will proceed in two phases. It includes a drill site near Bluff in Southland and investigations into prospective natural hydrogen drilling locations in the North Island. The research will assess both white (natural) and orange (rock-reaction) hydrogen, which are emerging as lower-emission alternatives for industrial and transport sectors.
Funding for the programme is part of a $30 million government package announced in August to expand New Zealand’s hydrogen sector. The government intends to make all research data open access, enabling better-informed decisions on regulation, future exploration, and investment by stakeholders. This transparency aims to foster collaboration among government, researchers, and industry.
White hydrogen occurs naturally underground, while orange hydrogen is produced through specific rock formations. Both types are being explored globally as potential lower-emission hydrogen sources for applications such as fertiliser production, fuel, heavy transport, aviation, and maritime industries. The research will help clarify New Zealand’s role in this emerging energy landscape.