Saturday, June 15, 2024

Govt supports private sector to slash emissions

The Government says it will partner with the private sector to help New Zealand’s biggest industrial players to slash their emissions faster.

“We know New Zealanders want to see lower-carbon products and services, and the proactivity these businesses are showing makes good business sense as well as being better for the environment, so we all stand to benefit,” said Minister of Energy and Resources, Megan Woods.

“The businesses we’re supporting involve some of New Zealand’s biggest industrial companies, which are central to our economy and food production systems, and in some cases what we consume every day.

She said the Government would partner with the private sector through the third round of the Government Investment in Decarbonising Industry Fund.

“We’re helping to clean up production processes, and helping business stay ahead of the curve,” Dr Woods said.

 “This third round of GIDI will achieve annual emissions reductions equivalent to taking 14,400 cars off the road.”

Today’s announcement was made at Southern Paprika Limited, one of New Zealand’s largest capsicum growers, and a GIDI round three recipient. Southern Paprika is set to install a biomass boiler and CO2 recovery unit – understood to be a New Zealand first – replacing natural gas, a common but high-emitting source of energy. The project will reduce emissions by 70% by replacing 70% of the processed heat requirement with a renewable energy source.

“The Fund is about encouraging innovation and supporting early adopters of technologies that can be replicated by others,” the Minister said.

“Process heat used mainly by business for industrial processes, such as manufacturing, and processing primary products, like milk drying, makes up over a quarter of this country’s energy-related emissions.

“The GIDI Fund is already making a tangible difference to the total greenhouse gases we generate, and it’s great to see regions right across the country benefiting, including Southland, Otago, Canterbury, West Coast, Nelson, Hawke’s Bay, Bay of Plenty, and Auckland.”

Climate Change Minister, James Shaw said today’s announcement joins a growing list of Government actions to cut emissions and limit warming. 

 “Very soon we will release the Government’s first Emissions Reduction Plan, which will be full of initiatives to drive down emissions across every sector of the economy.”

 “In 10 or 20 years’ time the world will be a very different place. But investments like these show we can move now to secure our part in it, and ensure the Aotearoa of the future is carbon-zero and climate-friendly, with fairness and opportunities for all,” said Mr Shaw.

Third round projects also include:

  • ANZCO Foods Limited – The beef and lamb producer will replace the aging coal boiler at its Kokiri site on the West Coast and install an electric boiler and high-temperature heat pump, completely electrifying its process heat and significantly reducing the site’s emissions.   
  • DB Breweries Limited – The Waitemata brewery site will install a new high-temperature heat pump, and start recovering heat from its refrigeration plant, significantly reducing its reliance on natural gas.
  • Auckland Meat Processors Limited – The Ōtāhuhu based meat processor will decommission two existing gas-fired hot water boilers and install high-temperature heat pumps to generate the site’s hot water for process operations. Heat from site refrigeration systems will be recovered and utilised as part of the heat pump system, improving energy efficiency.

The funding commitment follows the allocation of two previous GIDI rounds announced in April and September 2021. 

“Projects from the first two GIDI rounds are tracking well. It’s encouraging that so many private sector organisations are partnering with government on this – the projects will help us move towards our Emissions Reduction goals and net-zero target.”

“This is further proof that the Government is delivering on a key election commitment to tackle climate change and helping to create jobs in the clean energy sector. This is about future-proofing our planet and our economy, which is especially vital as we continue our solid economic recovery from COVID-19,” Dr Woods said.

GIDI RoundAnnual emissions saving (tonnes CO2e)Lifetime emissions saving (tonnes CO2e)Equivalent cars off the roadTotal project incremental capital cost ($)Government (GIDI) contribution ($)Marginal abatement cost to Government ($ per tonne)
Round One185,0213,807,84568,50058,031,74327,792,95812.29
Round Two140,2232,752,13751,90081,800,44127,989,76918.73
Round Three38,883900,63114,40045,663,488.5013,000,30324.77
(weighted average)

The Government Investment in Decarbonising Industry (GIDI) Fund is administered by EECA (the Energy Efficiency and Conservation Authority) and focusses on investing in, and promoting, cleaner industrial processes and process heat. This is achieved through energy efficiency, applying new and innovative technologies, and fuel switching.

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