Carbon News
  • Members
    • Login
      Forgot Password?
    • Not a member? Subscribe
    • Forgot Password
      Back to Login
    • Not a member? Subscribe
  • Home
  • New Zealand
    • Politics
    • Energy
    • Agriculture
    • Carbon emissions
    • Transport
    • Forestry
    • Business
  • Markets
    • Analysis
    • NZ carbon price
  • International
    • Australia
    • United States
    • China
    • Europe
    • United Kingdom
    • Canada
    • Asia
    • Pacific
    • Antarctic/Arctic
    • Africa
    • South America
    • United Nations
  • News Direct
    • Media releases
    • Climate calendar
  • About Carbon News
    • Contact us
    • Advertising
    • Subscribe
    • Service
    • Policies

Hope or hype? NZ needs to be realistic about the clean energy potential of green hydrogen

5 Aug 2024


By Ian Mason and Robert McLachlan 

The recent failure of a deal to deliver hydrogen-powered trucks to New Zealand, and the removal of a NZ$100 million government rebate scheme for green hydrogen users in the 2024 budget, make a transition to the much-lauded energy technology increasingly less certain.

The government had invested $6.5 million for the purchase of up to 25 heavy freight hydrogen trucks as part of a wider energy strategy due by the end of the year. But the US company Hyzon, which makes hydrogen fuel-cell trucks and had been modifying diesel trucks to use hydrogen, pulled out at short notice.


Nonetheless, interest in hydrogen for future transport and energy systems has soared globally, and New Zealand is no exception. But we argue that critical voices have been largely missing from the debate here.

In New Zealand, green hydrogen (which is produced with electricity from renewable sources) has attracted government support of $186.3 million from 2017 to 2023. This provided funding for a hydrogen refuelling network, vehicle conversions and purchases, research, and the establishment of the New Zealand Hydrogen Council (now Hydrogen New Zealand).

 

* The rebate was removed in the May 2024 budget; ** project not progressed, no funds paid out.
 

Proponents of green hydrogen argue it is essential for fuelling economic sectors they believe will be hard to decarbonise by direct electrification. As well as heavy road transport, this includes shipping and fertiliser production.


But opinions differ considerably on which sectors to focus on, and whether hydrogen is the best choice.


Evolution of the narrative

In the wake of the previous government’s ban on new offshore oil and gas exploration, the 2019 H2 Taranaki roadmap outlined a vision for the region as a leader in hydrogen production.

Former energy minister Megan Woods reinforced this, indicating her government would be interested in any associated economic opportunities. This largely positive narrative continued in two further government reports.

The first, A Vision for Hydrogen in New Zealand, suggested the case for hydrogen was already settled:

Hydrogen is poised to fulfil its potential as a clean alternative to hydrocarbons in the global pursuit of decarbonisation to address climate change.

Development of green hydrogen was largely implicit in the second report, the Interim Hydrogen Roadmap, which aimed to:

optimise the potential for green hydrogen to contribute to New Zealand’s emissions reductions, economic development, and energy sector to the extent compatible with our broader electrification goals.

We analysed these reports using a content analysis approach focused on identifying how often strengths, weaknesses, opportunities or threats are mentioned. This revealed the words “opportunities” and “challenges” were used frequently, while “weaknesses” and “threats” were absent.


The use of “strengths” was confined to perceived advantages of New Zealand as a location for hydrogen production. Where difficulties were identified, they were framed as challenges rather than weaknesses.


This optimistic tone is generally reflected in descriptions of several government-funded projects, including green hydrogen research at GNS Science, and international collaborations such as the German-NZ Green Hydrogen alliance.


Media reports have typically reflected the enthusiastic narrative. Of 83 articles on green hydrogen published in New Zealand between 2019 and 2023, only 15 (18%) contained any critical analysis.


Critical voices need to be heard

While some experts have voiced serious concerns about green hydrogen, this has not featured prominently in the debate in New Zealand.


For example, research by University of Cambridge engineering expert David Cebon shows battery electric vehicles are superior to hydrogen vehicles for heavy transport.


The emergence of fast (five minutes or less) automated and manual battery-swap systems, which provide an alternative to high-powered fast-charging systems, supports this point.


Climate and energy strategist Michael Barnard, who covers the green hydrogen debate extensively, writes:

Since 2000, application after application of hydrogen has found it to be inefficient, ineffective and expensive compared to obvious alternatives.

A German rail company which launched the world’s first hydrogen line last year has since opted for cheaper all-electric trains. Rising costs have also forced one Austrian state to abandon plans to introduce hydrogen buses.


Recent research suggests developments in battery-run and fast-charging electric trucks could soon make hydrogen fuel cells superfluous in road transport in most cases.


UK energy analyst Michael Liebreich has quantified the immense scale, significant impracticalities, enormous subsidies and costs associated with green hydrogen.


Liebreich’s “hydrogen ladder” ranks both actual and potential uses. It provides an evidence-informed guide on where to best focus attention and resources. Based on this, the previous government’s funding for the manufacture of green fertiliser (for which hydrogen is an input) was a sensible allocation.


In New Zealand, a 2019 report sponsored by industry and the government, and a letter from the Parliamentary Commissioner for the Environment, have both provided some critical analysis of the potential for green hydrogen.


Towards a new narrative

The previous government’s commitment to finalise New Zealand’s hydrogen strategy, and to deliver an overall energy strategy, remains in place. But we need a more nuanced perspective.


This must start with an acknowledgement that hydrogen is an energy carrier (which has to be produced from other sources of energy), and not an energy resource like solar radiation, wind or hydro.


We need an approach that can continue to adapt to changes in “hard to abate” sectors of the energy system. Critiques of green hydrogen need to enter the discussion if we are to make informed choices.


Government policy on this topic must be informed by independent advice free from commercial interests. A new green hydrogen narrative will enable us to focus our limited resources on applications with the best chance of delivering on New Zealand’s decarbonisation and sustainability aspirations.


This could include key New Zealand industries switching from fossil fuels to hydrogen to produce green steel, green ammonia and fertiliser and green methanol.



The authors are grateful to Paul Callister for his helpful comments and suggestions.The Conversation


Ian Mason, Adjunct Senior Fellow in Renewable Energy Systems Engineering, University of Canterbury and Robert McLachlan, Professor in Applied Mathematics, Te Kunenga ki Pūrehuroa – Massey University.


This article is republished from The Conversation under a Creative Commons license. Read the original article.

print this story


Related Topics:   Energy Transport

More >
Energy
More >
Castlepoint lighthouse, Wairarapa

NZ prepares to join ‘gold rush’ for white hydrogen

Today 11:00am

By Pattrick Smellie | New Zealand may be close to commercialising the capture and use of naturally occurring ‘white’ hydrogen, with investment plans for developments in the Wairarapa region picking up pace in response to spiralling oil prices.

Gas sector asks Govt to back biomethane

Today 11:00am

The gas sector has asked the Government to back a much more active push into biomethane, arguing renewable gas made from waste and other organic material could eventually supply more than half of New Zealand's remaining natural gas demand.

‘Significant’ shift as EECA backs commercial battery storage

Tue 24 Mar 2026

By Shannon Morris-Williams | The Energy Efficiency & Conservation Authority is preparing to roll out co-funding for commercial battery storage projects, targeting businesses ready to deploy systems that can ease pressure on the grid.

Peter's State of the Nation address in Tauranga

Peters’ power pitch

Mon 23 Mar 2026

By Liz Kivi | NZ First leader Winston Peters promised he would intervene in the energy market to deliver cheaper prices if his party is re-elected, with a plan to split the gentailers into separate generators and retailers.

Can oil crisis lead to the economic transformation we desperately need?

Fri 20 Mar 2026

COMMENT: The latest crisis has all the ingredients for the “wake-up call” we need to transform our economy to one fit for the future. But we thought that about COVID as well, writes Catherine Knight.

Govt finalises geothermal strategy and commits to $50m boost

Thu 19 Mar 2026

By Shannon Morris-Williams | The Government has launched a plan to grow geothermal energy and committed a further $50 million from the Regional Infrastructure Fund to support early-stage projects and drive expansion of the sector.

LNG sold as insurance, but modelling points to a bigger role

Thu 19 Mar 2026

New Zealand’s gas market is heading for a sharp contraction whether the country sticks with domestic supply alone or introduces liquefied natural gas imports.

Oil shock tests Government’s balancing act

17 Mar 2026

The Government is trying to show it is on top of fuel security risk without giving the impression New Zealand is heading for a shortage.

Mayor stands by comments over AI factory cable

17 Mar 2026

By Matthew Rosenberg, Local Democracy Reporter | Invercargill mayor Tom Campbell is standing by his view that a new cable for a large AI data factory will not impact the environment at Ōreti Beach, despite a report saying otherwise.

'Power-hungry' AI data centre could push up electricity prices

16 Mar 2026

By Shannon Morris-Williams | A proposed AI-focused data centre in Southland could become New Zealand’s second-largest electricity user, raising concerns it may drive up power prices and complicate efforts to decarbonise the national grid.

Carbon News

Subscriptions, Advertising & General

[email protected]

Editorial

[email protected]

We welcome comments, news tips and suggestions - please also use this address to submit all media releases for News Direct).

Useful Links
Home About Carbon News Contact us Advertising Subscribe Service Policies
New Zealand
Politics Energy Agriculture Carbon emissions Transport Forestry Business
International
Australia United States China Europe United Kingdom Canada Asia Pacific Antarctic/Arctic Africa South America United Nations
Home
Markets
Analysis NZ carbon price
News Direct
Media releases Climate calendar

© 2008-2026 Carbon News. All Rights Reserved. • Your IP Address: 216.73.216.158 • User account: Sign In

Please wait...
Audit log: