Hydrogen is emerging as a critical part of the low-carbon transition for industries where electrification is not a straightforward solution. This includes the production of steel, fertiliser and methanol as well as long-haul transport. In New Zealand, these industries account for about 17% of total emissions. Hydrogen could replace these emissions but this would require annual production of 600,000 to one million tonnes. The cost of producing low-carbon hydrogen is a critical factor.
