The Government of New Zealand has launched a NZD 70 million fund to accelerate the decarbonization of industrial process heat and foster a clean COVID-19 recovery. The fund will offer financial support to businesses and industries to switch from boilers run on coal and gas to cleaner electricity and biomass options.
Announced on November 11, the Government Investment in Decarbonising Industry (GIDI) Fund is already open for applications. The fund is administered by New Zealand’s Energy Efficiency and Conservation Authority, making nearly NZD 70 million of capital grants co-investments available to New Zealand-based businesses who demonstrate a commitment to decarbonizing.
Process heat, which is targeted by these investments, makes up around a third of New Zealand’s energy use and strongly depends on fossil fuels. Prime Minister Jacinda Ardern therefore underlined:
“Reducing greenhouse gas emissions from process heat is a win-win for our climate and our recovery. The $70 million fund will create jobs and stimulate the economy while demonstrating our commitment to future-proofing our recovery.”