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 >

Profound shifts in our changing energy system – new data

Wed 27 Aug 2025

New Zealand’s energy system is undergoing a profound shift as falling gas production and a dry hydro year reshaped the electricity market in 2024, according to data from the Ministry of Business, Innovation and Employment’s Energy in New Zealand 2025.

Meridian Energy considers green bond offer

Mon 25 Aug 2025

Meridian Energy is considering making an offer of up to $250 million of 6.5 year unsecured, unsubordinated, fixed rate green bonds to institutional and New Zealand retail investors.

NZ must strengthen energy system

19 Aug 2025

New Zealand must keep strengthening its energy system if it is to remain competitive on the world stage while moving towards net-zero emissions, according to a new benchmarking report from the BusinessNZ Energy Council.

Heat pumps could cut household energy bills by $1.5 billion a year

12 Aug 2025

By Liz Kivi | Heat pumps could save Kiwi households hundreds of millions of dollars each year, as well as freeing up energy for industrial users, according to a new report.

Gas pressure intensifies

12 Aug 2025

The pressure from reduced gas supply is pushing industries that rely on cheap gas out of the market in favour of those who can afford to pay more.

Huntly Power Station

Gentailers to stockpile coal under new deal

5 Aug 2025

By Shannon Morris-Williams | An agreement between New Zealand’s four major electricity generators to establish a 10-year fuel reserve is being labelled a 'climate change stockpile', and could undermine momentum for renewable energy investment.

Waitaki Hydro Dam

Warmer end to winter but dry spell expected over southern lakes

5 Aug 2025

As hydro lake levels hover just below average levels, climate forecasts indicate that warmer than usual weather conditions will reduce demand, but there will likely be less rain over the southern hydro lakes as New Zealand moves towards spring and summer.

Geothermal power station near Taupō

A modest geothermal strategy

31 Jul 2025

By Pattrick Smellie | The Government has unveiled a far more modest geothermal energy strategy than its primary backer, Resources Minister Shane Jones, had sought.

Resources Minister Shane Jones

Last minute change to oil and gas legislation over cleanup costs

31 Jul 2025

By Liz Kivi | The government is expected to repeal the oil and gas ban today, with a last-minute amendment handing discretionary power to two ministers over the controversial issue of decommissioning.

Hiringa chief executive Andrew Clennett

Hiringa eyes green methanol plant near Whanganui

29 Jul 2025

By Pattrick Smellie | Green hydrogen pioneer Hiringa Energy is deep in planning to develop an “eight-to-nine figure” methanol plant near Whanganui, using a combination of biomass and hydrogen produced using renewable energy.

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

© 2008-2025 Carbon News. All Rights Reserved. • Your IP Address: 216.73.216.132 • User account: Sign In

Please wait...
Audit log: