Ban on new coal-fired boilers
• Financing to move companies away from fossil fuels – In the first round, we will achieve up to 10% of the total long-term emissions savings required by the Climate Commission during the first draft budget period.(1)It’s the same as removing 49,000 cars off the road.
The government has fulfilled an important election promise to tackle climate change by banning new cold and medium temperature coal-fired boilers and partnering with the private sector to support the transition from fossil fuels.
This is the first major announcement after the Climate Commission released a draft package to advise the government in February.
“Today’s announcement will make a big difference in New Zealand’s emission profile, significantly boost the clean energy sector and help us on the path to a cleaner and smarter economy,” said Megan Woods, Minister of Energy Resources. Says.
The ban on new coal boilers used in manufacturing and production will come into effect by the 31st.st December of this year. The proposed option is to ban other new fossil fuel boilers that have suitable alternative technologies and are economically viable.
The government is also proposing to phase out existing coal boilers by 2037. In addition, through a national environmental standard re-agreement process and best practice requirements, ways to phase out other fossil fuels on existing sites are being considered.
“The amount of coal replaced by these proposals is equivalent to about 500,000 tonnes each year. When the changes are fully implemented, 400,000 to 550,000 cars will be removed from the road in a year. That’s it, “said Megan Woods.
Also announced today were successful applicants in the first round of government investment in the Decarbonization Industry Fund. A total of 14 companies will receive a $ 22.88 million co-fund to support the transition from fossil fuels.
“The Decarbonization Fund provides significant financial support to businesses and industries to help switch from coal and gas-powered boilers to cleaner electricity and biomass options. This is clean energy. It helps create jobs in the sector and guarantees the future of the economy, “says Megan Woods.
“14 projects(2) Today, we are announcing funding to achieve up to 10 percent of the long-term total emission reductions required by the Climate Commission’s first draft carbon budget from 2022 to 2025.(1) – It’s like removing 49,000 cars off the road, ”says Megan Woods.
Environment Minister David Parker said both the decarbonization fund and coal boiler initiatives have helped reduce emissions in the manufacturing and production sectors.
“The fuel used in manufacturing and production (known as process heat) produces about 8% of New Zealand’s emissions and is the second largest energy-related source after transportation.
“The heat of the decarbonization process is one of New Zealand’s greatest opportunities to reduce domestic energy emissions and will contribute significantly to New Zealand’s 2050 net zero carbon target,” said David Parker. ..
Climate Change Minister James Shaw said in today’s announcement that the government has taken another necessary step on the road to a low-emission economy in Aotearoa, New Zealand.
“Working with the industry to switch from coal burning to a clean alternative helps ensure a better, cleaner future for children and grandchildren,” said James Shaw. ..
The two Round One-funded companies are McCain Foods and Woolworks in Timaru.
“McCain and Woolworks(3) Two great examples of companies working to play a leading role in climate change through the acquisition of the Decarbonization Fund. It’s great to see them adopting clean technology without sacrificing productivity, “says Megan Woods.
The· Consultation documents See the Ministry of the Environment website for the 2037 coal proposal.
Jo Leavesley (Hon Woods) – 021839835
Danny Stevens (Hon Shaw) – 021829206
Vernon Small (Hong Parker) – 021849517
Notes to editors:
(1) This figure is based on the long-term total emission reductions required during the Commission’s first draft carbon budget. Compared to the current policy reference scenario.. Based on CCC data, total long-lived gas emissions should be reduced by a total of 4.9 MtCO2e from 2022 to 2025, in addition to the policy reference scenario. The total emission reduction expected from the GIDI Round 1 project during this period will range from 0.375 to 0.525 MtCO2e, depending on the implementation period. This corresponds to 7.6 to 10.7% of the required long-term gas emission reduction. Source: https://ccc-production-media.s3.ap-southeast-2.amazonaws.com/public/2021-Draft-Advice-Report-charts-and-data-v3.xlsx
(2) The complete list of approved GIDI projects is as follows.
|Applicant||business||Technology||Government joint investment||Annual carbon reduction (tC02)||Lifetime carbon reduction (tC02)|
|McCain Foods Timaru||Boiler conversion and flyer heat recovery||Heat recovery of biomass boilers and fryer||$ 2,876,500||33,815||845,375|
|Synlait||Synlait Boiler 2 Biomass||Biomass boiler||$ 611,500||28,500||200,000|
|WoolWorks New Zealand Limited Timaru||Decarbonization project: Electrode boiler, high temperature heat pump, demand reduction||Electrode boiler (steam) and high temperature heat pump||$ 3,650,000||11,802||267,340|
|WestlandDairy Company Limited||Implementation of demand reduction||Reduction of demand||$ 1,768,800||8,440||168,800|
|JSEwers||Reducing greenhouse heat demand and switching to low-carbon fuels||Shade screen and biomass boiler||$ 4,078,000||26,922||673,050|
|Napier pine||Napier Pinewood Boiler Project to Replace 4MW Natural Gas Boiler||Wood boiler||$ 995,000||4,165||104,125|
|New Zealand Starch Limited||Heat recovery of waste steam using a spray condenser||Spray condenser||$ 150,000||643||16,075|
|AFFCO Malvern||Conversion from SPM Malvern boiler to heat pump||Dual high temperature heat pump||$ 950,000||3,454||69,080|
|Alliance Spukeuri||Heat pump project||heat pump||$ 1,683,400||9,030||180,600|
|Silver Fern Farms Belfast||Belfast Hot Water Heat Pump Project||heat pump||$ 795,300||2,974||59,480|
|Goodman Fielder Limited||Longburn high temperature heat pump project||heat pump||$ 210,000||1,200||24,000|
|Silver Fern Farms Fine Gand||Finegand Heat Recovery and Heat Pumping Project||heat pump||$ 3,027,075||10,503||210,060|
|AFFCO Awarua||South Pacific Meat Awarua Biogas Project||Double combustion (biogas and LPG) gas hot water boiler||$ 406,083||1,730||34,600|
|Alliance Loan Building||Energy optimization / electrification opportunities||Heat pump and electrode boiler||$ 1,591,300||6,746||134,920|
(3) Woolworks handles about 76% of all wool grown in New Zealand and is the world’s largest wool dealer. McCain Foods processes over 200,000 tonnes of potatoes and vegetables annually. It has two processing plants in New Zealand and employs more than 300 people nationwide.
Q & A
What is process heat?
Process heat is the thermal energy used to manufacture products in industry. Its applications include converting milk into powder, wood pulp into paper, metal production and chemical production (eg methanol).
-Produces about 8% of New Zealand’s GHG emissions.
-Accounts for 17% of emissions covered by the 2050 net zero target.
-It is the second largest energy-related emission source after transportation (about 27% of energy-related emissions).
Why are the proposed bans and phasing out limited to low and medium temperature coal boilers only?
Industries with high temperature requirements generally use energy in a way that is highly integrated into the plant. In other words, there are fewer opportunities for low carbon. These types of industries (for example, steel) can use coal if they adhere to best practices and have GHG emission plans that show how to reduce emissions over time.
What steps are being taken to help the industry move away from the use of coal-fired boilers?
A three-year $ 70 million decarbonization industry fund as a partnership between government and enterprise to contribute to the recovery of COVID-19 by accelerating the decarbonization of industrial process heat, stimulating and supporting the domestic economy. (GIDI) was launched in November 2020. employment.
It aims to fund the adoption of energy efficiency and renewable technologies in industry, promote the adoption of industrial thermal decarbonization, and demonstrate what is possible.
EECA (Energy Efficiency and Conservation Authority) manages the GIDI Fund on behalf of the government through a disputed process of the availability of a $ 69 million capital grant co-investment to support outstanding projects. ..
Round One recipients were announced today.
For more information, please visit: Government Investment in Decarbonized Industry (GIDI) Fund | Generes
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