Primary industry sector New Zealand It is taking giant steps to reduce its dependence on fossil fuels and work with the government to reduce carbon emissions.
The Minister for Energy and Resources, Megan Woods, has announced grants to 17 industrial energy users to help them rapidly transition away from fossil fuels through the Government Investment Fund for the Decarbonisation of Industry (GIDI).
“We’re seeing some of the country’s largest food processors and manufacturers, such as Alliance and Open Country Dairy, make new commitments to several large decarbonisation projects at the same time,” said Megan Woods.
“There is a real push to phase out fossil fuels from the energy system and reduce emissions through renewable energy and energy efficiency. We have come a long way in the last three years of GIDI’s operation. Apart from our major partnership deals with NZ Steel and Fonterra, this is the largest funding allocation to date from GIDI: Industrial. Businesses from one end of New Zealand to the other are facing the challenge of reducing their emissions.
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“The plans announced today will reduce carbon emissions by 67,300 tonnes per year, equivalent to taking around 25,000 cars off the road. This is a great decision for the environment and helps us achieve our climate goals,” said Megan Woods.
New Zealanders and export markets want low-carbon products and services, and GIDI’s support is helping early transition to low-carbon options, proving once again that companies don’t have to leave industry to decarbonize.
Rainbow Park Nurseries
This week, Dr. Woods took a first-hand look at Rainbow Park Nurseries, which will receive co-funding for technology to generate heat from electricity instead of natural gas, reducing total energy-related emissions by 1,191 tons of CO2. e per year
“Thanks to GIDI’s co-funding, we have successfully launched key parts of our decarbonisation programme,” said Andrew Taylor, director of Rainbow Park Nurseries. “This will allow us to go gas-free, which will provide long-term security in energy costs and puts us in a position to refocus our teams’ efforts on growing plants and trees for Kiwis to enjoy”.
Rainbow Park Nurseries is one of the most technologically advanced nurseries in the country, with a team of around 70 professional horticulturists working 24 hours a day to supervise and care for the plants. Established in 1975, the family business supplies more than 1.5 million plants from its 15 hectare nursery in Ramarama to retailers across the country.
“Businesses have many competing priorities, but this effort to reduce emissions cannot wait until 2050 or 2030. We need to get down to business now, especially in high-impact areas like industrial energy use,” Woods said.
The announced plans will reduce carbon emissions by 67,300 tonnes per year, equivalent to taking about 25,000 cars off the road.
Climate Change Minister James Shaw said the deal was another important step for the sector. “It’s great to see companies across New Zealand, from Northland to Otago to Southland, showing what they can do to better position New Zealand to achieve net zero emissions by 2050.”
“This is about accelerating action so that the sector is more resilient. But we cannot rest on our laurels. To avoid the worst of the climate crisis, we must seriously reduce our reliance on fossil fuels,” declared James Shaw.
Beneficiaries of the 5th Call come from sectors such as sawmills, meat, dairy, beverage and food manufacturing, dry cleaning and commercial laundry, nurseries, mining and textile and health services. GIDI’s 5th round is making a public investment of $33.3 million and leveraging over $62 million in private funding.
Allsco Group Managing Director and Round Five beneficiary Steve Barton commented: “EECA support and GIDI co-funding has allowed us to accelerate the phase-out of coal as a fuel in Christchurch by almost 10 years and the rest of the South Island. “This could reduce our total carbon emissions by almost 48% and our 11,000 Business customers can support their own supply chain decarbonisation.”
GIDI: Industrial finance cycles have been replaced by a permanent model. Businesses are encouraged to apply for funding as soon as they are ready.
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