Role of hydrogen in low-carbon energy transition

Abstract: Dr Sergey Paltsev discussed the role of hydrogen as a low carbon solution in reducing emissions across various sectors of the economy including transportation, industrial uses, and for energy storage. He acknowledged hydrogen’s potential benefits, but also noted substantial challenges, such as the high costs and infrastructural demands associated with its production and use. Dr Paltsev recognised the unique context of New Zealand, noting that with our light vehicle fleet, hydrogen may not be the ideal solution for transportation decarbonisation, suggesting instead that New Zealand’s air and maritime traffic sectors might benefit from alternative strategies. Considering factors like New Zealand’s energy security and high electricity costs, Dr Paltsev highlighted the need for significant financial backing and thoughtful consideration before focusing on hydrogen in the energy transition.