Hydrogen could be the future of regional air travel in New Zealand.

Air New Zealand and aircraft manufacturer Airbus have today announced a joint initiative to research how hydrogen-powered aircraft could be part of their fleet by 2030.

The zero-emissions technology would deliver a massive reduction to New Zealand's carbon footprint.

And Southland could potentially be a source of fuel for the aircraft.

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Various parties, including Australian mining giant Fortescue Metals Group and NZ electricity companies Contact Energy and Meridian Energy, are eyeing the Tiwai Point aluminium smelter site for 'green' hydrogen production.

Tiwai Point, near Bluff, is due to close in 2024, with the loss of 1000 jobs for Southland and about $400 million per year for its economy.

Air New Zealand operates non-stop flights to Invercargill from Auckland, Wellington, and Christchurch. 

The company's Chief Executive Officer Greg Foran says NZ could become "a world leader in the adoption of zero emissions aircraft".

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"This agreement brings us a step closer seeing low carbon solutions in place for our shorter domestic and regional flights in the next decade.

“At this stage, both hydrogen and battery electric aircraft are still on the table as potential options for our shorter domestic flights, along with Sustainable Aviation Fuel (SAF) for long haul operations.

"This research will help to inform future decision making as we work towards net zero emissions by 2050."

Regional airline Sounds Air, which runs scheduled flights from Wanaka to Christchurch, has already placed orders for three 20-seat, electric ES-19 passenger aircraft from Swedish-based company Heart Aerospace.

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They'll be delivered in 2026.

But Airbus is currently looking at three concepts for hydrogen-powered aircraft, including a turboprop, turbofan and blended wing option.

Air NZ plans to work closely with Airbus on various challenges, including achievable flying range and what ground infrastructure or logistics changes may be required to implement the technology in New Zealand.

Airbus Asia-Pacific President Anand Stanley says: "This agreement with Air New Zealand will provide us with important insights about how we could put a zero-emission aircraft into service.

"The joint study will enable us to gain invaluable feedback on what airlines will expect and their preferences in terms of configuration and performance.