New Zealand Hydrogen Association Update

ADVANCING NEW ZEALAND'S TRANSITION TO A LOW EMISSIONS ECONOMY

NEW ZEALAND HYDROGEN ASSOCIATION

Update 7 - June 2020

Dear Valued Member,

Since our last update in March 2020, the world has changed significantly with the advent of COVID-19 and its far-reaching implications for us all.

We are all immensely proud of the effort our team of 5 million made during our Level 4 lockdown and what we achieved together was world-class. It is now time to look to the future and work together again to deliver a bold economic recovery that is focused with clarity and vision on the undoubted opportunity that transitioning to a low emission economy offers. As an innovative, nimble country with an abundance of renewable resources that is the envy of the world, this opportunity is ours for the taking.

Like so many of you, lockdown certainly wasn’t quiet for the Association. A brief summary of the key progress made during the past few months now follows:

LINKS TO INTERNATIONAL ASSOCIATIONS

As part of the Association’s Strategic Vision and Objectives developed by Members, deepening links to international associations has been at the forefront of recent work.

We have made significant progress particularly in the Asia Pacific and European regions with MoU’s signed with the Australian Hydrogen Council and the recently formed Asia Pacific Hydrogen Association.

We are also honoured to become the first New Zealand organisation to be invited to join Japan’s Green Ammonia Consortium as an Advisory Member, where we are among an impressive line-up of international organisations.

Work is also underway progressing collaboration agreements with both South Korea and Scotland, the latter of which is impressively in its 15^th year of operation.

Our relationship with the global Hydrogen Council continues to strengthen, which provides significant profile on a world stage to our Association and to New Zealand.

This week our Association was invited to present on a diverse panel of high-level hydrogen stakeholders representing public and private organisations from key global economies. The live webinar was organised by the Hydrogen Council for its Members and was aimed at showcasing the range of stimulus packages and $$ being committed to the delivery of hydrogen infrastructure globally. I was joined on the panel by Gavin Young of Hyundai New Zealand as our Association Member representative.

The major economies represented by regions included Asia Pacific (Australia, China, Japan, Korea, NZ), Europe (European Union and Germany) and North America (USA, California and Canada). Over 130 attendees from the Hydrogen Council’s Member organisations participated from around the world and it was a privilege for Gavin and I to fly the New Zealand flag.

WEBSITE DEVELOPMENTS

The Association's live Facebook Newsfeed and website are continually being updated to showcase hydrogen-related articles and industry news from around the world.

As part of our Forward Programme of Work we have developed a 'Why Hydrogen?' dropdown menu on the website, which includes a range of pages focused on raising the education and awareness of hydrogen.

Newly uploaded website pages include: Why Hydrogen?, Hydrogen Uses, Hydrogen Q & A and a summary of New Zealand’s Hydrogen Projects

POLICY DEVELOPMENTS

A Roadmap for Hydrogen in New Zealand
The Government's hydrogen vision green paper outlined the potential uses of hydrogen in New Zealand and explored in a non-quantitative way some of the challenges associated with its use. As a stepping stone to the development of New Zealand's much-awaited hydrogen strategy and roadmap, MBIE has now published its most recent report. Castalia were commissioned to produce an interactive model that seeks to take a preliminary view of Hydrogen Supply and Demand Pathways in New Zealand.

MBIE acknowledge that the published results are strongly influenced by future forecasts and the assumptions made in relation to electricity price and technology change.

Preliminary feedback from several Association Members has highlighted that certain key assumptions may require further analysis and refinement in order to achieve greater alignment with the New Zealand context. MBIE has noted that feedback on the preliminary results of the model may be reflected in updates to the live model, which is still under development.

We strongly encourage our Members to provide feedback on the Castalia report either directly to MBIE or via the Association.

Hydrogen R&D Strategy
We are working with MBIE and our Members involved in hydrogen R&D to develop a framework that identifies the research initiatives currently underway in New Zealand. It will also identify the potential opportunities that exist for inward investment and collaboration across our international hydrogen networks. The project which commenced prior to lockdown can now progress again with meetings planned for the coming weeks.

Hydrogen Safety Standards

Work continues with Standards New Zealand to develop hydrogen safety standards that support the following objectives:

a. Enable the advancement of pilot/demonstration projects that will raise the profile for investment in hydrogen as an alternative to fossil fuel.

b. Enable multiple hydrogen supply/generation and industrial feedstock pathways in support of the Government's medium and long-term carbon emission reduction targets.

c. Ensure standards that reflect the need for safe production, distribution, transportation and that encourage the future development of regional hydrogen bulk-storage hubs, that in-turn support supply chains for hydrogen, further related equipment investment (such as refuelling stations) and hydrogen-derived fuels.

Standards New Zealand are in the process of prioritising their recommendations on the following four priority work streams, which will form part of the Standards Development Roadmap:

i. Production & Purification

ii. Fuel Station Equipment and Design

iii. Mobility and Safety

iv. Network Distribution and Inspection.

EVENTS

Networking Event - September 2020
Our Association's next networking event was to be held in May, however this was postponed due to travel restrictions. We are pleased to announce that this event has now been rescheduled to Friday 25^th September 2020 and will be held immediately prior to our AGM.

We are also planning site visits to be included as part of the event. More information will be available soon!

MEMBER'S NEWS

Hiringa Energy focusing on green hydrogen
Hiringa Energy are developing several projects to produce and distribute low cost green hydrogen across New Zealand.

Their 50:50 Joint Venture with Ballance Agri-nutrients for large scale green hydrogen and ammonia production at Kapuni is progressing through the next project stage gate with the final concept being selected, which includes wind turbine and electrolyser sizing, suppliers and configurations.

Hiringa is also developing a green hydrogen refuelling network to support the roll-out of heavy FCEVs across New Zealand. The initial Phase 1 roll-out consists of 8 stations, which will be installed on partner truck stops in Hamilton, Tauranga, Taupo, Manawatu, South Auckland, Taranaki, Wellington and Christchurch. The first of the 8 stations, due to come online in 2021, are in detailed design and going through the consenting process. Phase 2 of the refuelling infrastructure project involves a further 18 stations, which are planned to be online by 2025. The network will be supplied from a combination of on-site hydrogen electrolysis and delivered green hydrogen from Hiringa and partner’s biogas and electrolysis production facilities.

First Gas Hydrogen Network Trial
First Gas has made significant progress on its Hydrogen Network Trial project since it was launched by Minister Dr. Megan Woods at Parliament in March.

The key areas of focus to date have included:

Development of the scenarios for hydrogen production and demand in consultation with major users and stakeholders;
Building a cost model for supply and competitiveness relative to other fuels;
Commencing pipeline simulation modelling of hydrogen to better understand the potential impacts on flows and pressures in the network; and
Developing potential trial targets and assessment criteria.

While some elements of the project are slightly delayed due to COVID-19, work is progressing well and project completion is aimed at Q3 2020.

APPOINTMENT OF NEW BOARD MEMBER

The Association's constitution provides for a minimum of five and a maximum of seven Directors and allows for interim appointments to be made to fill vacant positions.

The Board is pleased to announce the appointment of Andy Sinclair, General Manager of Hyundai New Zealand as a newly appointed Board Member. Andy’s appointment follows the resignation of Steve Murray who was unable to continue his role as Director due to existing commitments. The Association would like to thank Steve for his contribution to the Board and we look forward to continuing to work with him and the Tuaropaki Trust as a valued Member of the Association.

Andy Sinclair
General Manager, Hyundai New Zealand
As the General Manager of Hyundai New Zealand, Andy has built up an extensive network of contacts and relationships throughout the Hyundai Motor Company, and has gained a significant amount of knowledge and understanding of the role hydrogen can play in New Zealand’s sustainable future.

Andy is also the President of the Motor Industry Association which represents the official importers and distributors of new cars, trucks, and motorcycles to New Zealand. We welcome Andy to our Board.

On behalf of the Board and myself, we thank you for your valued ongoing support and commitment to our Association.

We look forward to continuing to work together, and to seeing you all at our September 29th networking event.

Warm regards,

Linda

Dr. Linda Wright
Chief Executive
New Zealand Hydrogen Association
+64 (0) 27 223 3064