Navigating the Clean Hydrogen Landscape in New Zealand
Key Ideas
- New Zealand's green hydrogen demand for various applications like fertiliser, methanol, shipping, and steel production is estimated at 1 MT/y, with challenges in scaling renewable power plants and electrolysers.
- Hydrogen plays a strategic role in long-duration energy storage, with potential for storing large amounts underground and addressing challenges like leak detection and microbial interactions.
- Decarbonising steel production through hydrogen-based processes like H2-DRI shows promise, with the need for low electricity prices to compete with coal-based methods.
- Exporting hydrogen from New Zealand poses challenges due to transport issues, with options like cryogenic liquefaction, ammonia conversion, and e-methanol production being explored.
Hydrogen, known as the 'Swiss army knife' of decarbonisation, is gaining attention in New Zealand for its potential to address various sectors' emissions. The country's green hydrogen demand is estimated at 1 MT/y for applications like fertiliser, methanol, shipping, and steel production, with hurdles in scaling up renewable energy infrastructure. Additionally, hydrogen is seen as crucial for long-duration energy storage, with the need for significant underground storage capabilities and solutions for challenges like leak detection and microbial influences. The steel industry is also looking towards hydrogen-based processes like H2-DRI for decarbonisation, emphasizing the necessity of low electricity prices to compete with traditional methods. Concerning hydrogen exports, New Zealand faces obstacles due to the gas's transport limitations, exploring options like cryogenic liquefaction and e-methanol production. Despite the potential benefits, the cost of hydrogen remains a significant consideration, with efforts focused on developing low-cost electrolysers using more abundant materials. As the clean hydrogen landscape evolves, with alternatives like 'gold' and 'orange' hydrogen emerging, New Zealand navigates various opportunities and challenges in its pursuit of decarbonisation.