Thursday, April 18, 2024

New funding round sees 15 businesses sign on to fossil fuel cuts

The Government has today announced it will partner with 15 more businesses to help them to cut fossil fuel emissions.

Minister of Energy and Resources, Megan Woods said the move was the equivalent of taking 14,200 cars off the road.

The partnership was announced as part of the latest round of Government Investment in Decarbonising Industry (GIDI) funding by Prime Minister, Chris Hipkins and Minister Woods at the Auckland-based NZ Sugar Company (Chelsea Sugar) – a round two recipient of contestable GIDI co-funding focused on process heat.

“Today we are announcing we’re partnering with 15 more businesses that are high energy users to help them reduce their reliance on fossil fuels, and slash our carbon emissions faster,” Minister Woods said.

“The projects announced today will reduce carbon emissions by 38,354 tonnes each year, which is equal to taking approximately 14,200 cars off the road – that’s more than the total number of cars in Wanaka.”

She said industrial energy, like coal boilers, make up about a quarter of all New Zealand’s energy-related emissions.

“Working with businesses to reduce their emissions is a pragmatic policy that is delivering results.”

“So far we have co-funded 66 major industrial decarbonisation projects in total, with all set for completion by December 2027.”

These projects are anticipated to reduce carbon emissions by 391,017 t of CO2 per year, the equivalent of to taking approximately 144,700 cars off the road – more than all the petrol vehicles in Hamilton, Minister Woods said.

“GIDI is great value for money. For the size of the investment, we are seeing significant emissions reductions, with the programme estimated to deliver projects that will make up around 17% of our total emissions reductions between 2022 and 2025.”

“By partnering with business we are speeding up the transition to clean energy while reducing New Zealand’s emissions faster than they otherwise would. 

“Many businesses – like NZ Sugar Company Limited (Chelsea Sugar) – have been bold and are actively finding ways to decarbonise their business. By targeting the activities that create the most emissions, companies can significantly lower their carbon footprint and hit their climate targets faster.

“This fund shows that we can decarbonise without having to de-industrialise our economy. Companies are producing the same products but now have the added bonus of producing them with clean energy,” she said. 

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