Businesses can now apply to transition from gas

The Gas Transition Loan Guarantee Scheme is now open for businesses making the investment to reduce their reliance on gas, Finance Minister Nicola Willis, Energy Minister Simeon Brown and Associate Energy Minister Shane Jones say.

“Businesses across New Zealand are facing higher gas prices and greater uncertainty about future supply. The Government is supporting businesses to lower energy cost and stay competitive and by switching from gas to other energy sources and improving energy efficiency,” Nicola Willis says.

“From today, businesses seeking new financing for gas transition projects can express their interest with participating banks - ANZ, ASB, BNZ, Kiwibank and Westpac - who will work with them to assess applications under the Scheme.

“Under the Gas Transition Loan Guarantee Scheme, the Crown will guarantee 80 per cent of the default risk for eligible loans. This frees up banks to pass on reduced interest rates to businesses and provide better lending terms.

“The Scheme is expected to unlock up to $1.2 billion of lending to help businesses eliminate or reduce reliance on gas while strengthening New Zealand's long-term economic resilience.”

Shane Jones says the scheme will help ensure regional industries remain productive, competitive and resilient as they adapt to changing energy markets.

“Many of our regional economies are built on energy-intensive industries such as food processing, wood processing, manufacturing and horticulture. These businesses create jobs, support local communities and generate export earnings, so it is important they have practical options to manage higher gas costs and maintain their competitiveness,” says Mr Jones.

“Alongside the Government's work to encourage new gas investment and improve security of supply, this scheme gives businesses greater flexibility to invest in the technologies and energy sources that best suit their operations. This scheme is about backing New Zealand industry and ensuring our regional economies remain strong, productive and prosperous well into the future.”

“Mr Brown says the scheme is about protecting New Zealanders’ jobs.

“Since the last government banned oil and gas exploration, there has been a significant reduction in natural gas supplies - they fell 23 per cent in the last year alone. This leaves businesses finding it increasingly difficult to secure long-term affordable gas contracts.

“New Zealand wants to export our goods, not our jobs and this loan scheme is a practical way to help businesses meet the cost of reducing their reliance on gas.

“Today also sees the launch of a suite of Energy Efficiency and Conservation Authority-led support for businesses,” Mr Brown says.

“The support is independent and designed to help businesses understand their energy options and identify a practical pathway, to give confidence before making significant investment decisions.

“Businesses have different energy needs, technical capabilities and levels of information available. Some may need help understanding where their gas is being used and identifying immediate improvements. Others may already have a potential project and need more detailed technical options or fuel feasibility analysis.

“I encourage gas using businesses to explore EECA’s tools and support, register interest in a regional workshop, or speak with a participating bank about the best next step.”

Further information on the Gas Transition Loan Guarantee Scheme, including eligibility criteria, is available on the Treasury website.

Further information on support services is available on EECA’s website. ...