The Minister for Climate Change has welcomed today’s report from Transpower examining New Zealand’s future energy options.

“The report, ‘Taking the climate heat out of process heat’, clearly shows we can move the country’s biggest user of coal to cleaner options,” said James Shaw.

“Transpower’s report says big reductions in greenhouse gases can be found in an activity that has been one of the fastest growing contributors to our emissions profile,” Mr Shaw said.

Process heat relates to any activity that generates heat in order to warm spaces or to manufacture products.

It is used throughout the economy – from milk powder and other food production, to heating schools and hospitals and sterilising equipment, to producing steel and aluminium.

“The Productivity Commission and the independent Climate Change Committee have both said transport and process heat are two key areas where emissions need to come down soonest and fastest,” said James Shaw.

Process heat made up 28 per cent of all energy-related greenhouse gas emissions in 2017 and have increased by about 45 per cent over the past 25 years.

“So, Transpower’s analysis today which says cleaner options with electricity are achievable and will provide significant gains for our low emissions goals is incredibly heartening.

“Also, it matches last week’s decision by our biggest exporter, Fonterra, to put an immediate stop on building new coal-boilers and not to increase its capacity to burn coal from now on.

“And today the international dairy giant, Danone, announced its investing $40 million to make its Balclutha milk powder plant carbon neutral.

“Increasingly, people understand that choosing cleaner, low emissions energy options is good for business as well as good for their children’s futures,” James Shaw said.

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