Hydrogen Modelling Study

The problem

The Government of New Zealand has set an ambitious goal to decarbonize the economy. The 2019 Hydrogen Vision acknowledges that hydrogen can play an important role in decarbonization but does not provide an in-depth analysis of the issues, including the action necessary to catalyze investment.

How we helped

New Zealand’s Ministry of Business, Innovation, and Employment (MBIE) engaged Castalia to deliver detailed modelling and analysis for the supply, demand, and distribution of hydrogen in New Zealand and potential export markets. This modelling integrates up-to-date costs and technical information to determine the potential supply and demand for green hydrogen production at multiple locations in New Zealand.

We assessed the demand in heavy vehicle transportation, electricity generation and storage, piped gas, and from export markets. The modelling shows the efficient production scale, resource use, international trade implications, and wider economic impacts. Castalia delivered a detailed modelling tool to MBIE, and trained officials in its use. Castalia also prepared a high-level, user-friendly online modelling tool to enable stakeholders to understand implications for hydrogen based on their own assumptions. Finally, the model results were presented to New Zealand Business Energy Council members in a joint presentation with MBIE.

Impact

The New Zealand Government gained crucial insights into the landed cost of New Zealand-supplied green hydrogen compared with competitor supply nations. New Zealand energy sector stakeholders are using the model insights to make key decisions on disruptive technology investments. The modelling will help take a new green hydrogen industry from policy ambition to commercial reality.