Government Updates Hydrogen Safety Rules to Modernise Regulation

Simon Watts says hydrogen is becoming a critical pillar of New Zealand’s future energy strategy.

The Government has approved a suite of changes to New Zealand’s health and safety regulations for the hydrogen sector, aiming to ensure the rules are modern, flexible, and capable of supporting the rapid expansion of hydrogen technologies. Energy Minister Simon Watts and Workplace Relations and Safety Minister Brooke van Velden say the changes will remove outdated barriers and help position New Zealand as a leader in sustainable energy innovation.

Simon Watts says hydrogen is becoming a critical pillar of New Zealand’s future energy strategy.

“The Government sees hydrogen as a valuable tool we can harness to kickstart economic growth. By harnessing its potential, we can drive innovation, create jobs, and position New Zealand as a leader in sustainable energy solutions.”

Hydrogen’s Role in a Low-Emissions Future

Hydrogen plays an essential role in decarbonising sectors where direct electrification remains difficult or impractical—such as heavy transport, long-haul freight, industrial heat processes, and some specialised manufacturing. The Government sees hydrogen as a key enabler of economic growth while reducing emissions.

“Hydrogen has an important role in our future energy mix,” Watts says. “It can support sectors that are difficult or impractical to electrify… while keeping our economy growing.”

Outdated Safety Settings Hindering Sector Development

Brooke van Velden says feedback gathered during her nationwide health and safety roadshow revealed widespread frustration from industry that the current regulatory framework was never designed with hydrogen in mind and is now constraining innovation.

“Current safety requirements were not developed with hydrogen in mind, and they are now preventing the safe development and use of hydrogen technologies.”

The Government has worked closely with industry experts, equipment suppliers, and hydrogen producers to identify unnecessary regulatory barriers and propose practical, safety-focused updates.

Van Velden says the objective is clear:

“We want our safety regulations to strike the right balance in allowing businesses to pick the technologies that work best for them, while still keeping workers and others safe.”

Ten Key Regulatory Changes Approved

The new package includes 10 technical and structural improvements designed to streamline approval processes, modernise safety rules, and provide flexibility for emerging technologies. These include:

• Setting specific safety requirements for hydrogen fuelling stations and cryogenic liquid hydrogen, addressing technologies not covered under current law.

• Simplifying approvals for hydrogen appliances and fittings, reducing delays for businesses adopting new equipment.

• Allowing alternatives to odorisation, acknowledging that odorants can compromise hydrogen fuel-cell performance.

• Permitting Multi-Element Gas Containers (MEGCs)—widely used internationally—to improve hydrogen transport and storage efficiency.

• Enabling the use of Safe Work Instruments and new safety instruments, allowing the regulatory framework to evolve as the technology advances.

• Updating references to modern standards for hazardous areas and dangerous goods transport to reflect international best practice.

These changes reflect the Government’s commitment to aligning regulation with innovation while maintaining strong safety protections for workers and communities.

Delivering on the Hydrogen Action Plan

Watts says the reforms are a key milestone in delivering the Hydrogen Action Plan, released in November 2024, which outlines the strategic steps New Zealand must take to scale its hydrogen economy.

“By making these changes, we are delivering a key priority under the Hydrogen Action Plan… By cutting this red tape we can unlock faster growth of the sector, drive more jobs, and deliver real benefits to our energy system, climate, and economy.”

A Platform for Innovation, Investment, and Jobs

The Government believes the updated regulatory settings will encourage investment and accelerate domestic hydrogen production, particularly for export-focused projects and large-scale industrial users. The changes are expected to:

• Improve investor confidence

• Support new hydrogen infrastructure

• Lower compliance costs

• Enable emerging technologies to be adopted more quickly

• Create new jobs in engineering, energy development, transport, and manufacturing

With global demand for clean hydrogen growing, the Government aims to ensure New Zealand’s regulatory system helps—not hinders—sector expansion.