NZ targets manufacturing sector to curb carbon emissions
In a bid to slash carbon emissions from New Zealand’s manufacturing sector, the government has announced a funding tranche that enables businesses to apply for up to 40% of a low carbon technology project’s cost, with up to $250,000 available for process heat projects, and $100,000 for other projects.
The latest funding round introduces new criteria to encourage larger scale projects tackling process heat – the hot water and heating systems used in manufacturing and other processes. Process heat accounts for 38% of New Zealand’s energy use, with 72% of this from non-renewable sources such as coal.
With New Zealand’s goal of net-zero carbon emissions by 2050 firmly in sight, businesses are being actively encouraged to adopt innovative technology that cuts greenhouse gas. The funding support is offered as part of the Technology Demonstration programme run by the Energy Efficiency and Conservation Authority (EECA).
Along with transport, reducing New Zealand’s use of fossil-fuelled process heat offers one of the most effective ways for New Zealand to reduce its climate change emissions.
Innovative technology, such as high temperature industrial heat pumps, has often already been commercialised overseas but is underused in New Zealand. The new funding criteria will help early adopters work through the risks and benefits, leading the way for wider uptake.
To qualify for funding, projects must reduce energy intensity or greenhouse gas emissions, have potential to be replicated on a large scale, and be financially viable, with a reasonable payback period.
Applications to the current funding round are open until Thursday 29 March.