Industrial process heat

New regulations to reduce industrial process heat emissions are now in effect to help lower emissions in New Zealand’s industrial sector. Find out how these changes impact industries and councils, and their responsibilities under the updated guidelines.

In 2023, the central government introduced the National Policy Statement for Greenhouse Gas Emissions from Industrial Process Heat (NPS – IPH GHG) and the National Environmental Standards for Industrial Process Heat (NES-IPH).

Together they aim to meet New Zealand’s obligations to reduce greenhouse gas emissions and accelerate New Zealand’s transition to a low-emission, thriving, and sustainable economy.

Process heat makes up 33 per cent of our overall energy use and contributes approximately eight per cent of gross greenhouse gas emissions. More than half of process heat is generated from the use of fossil fuels, mainly liquid petroleum gas (LPG) gas and coal.

Regulation changes

The changes, in summary:

• Discharges of greenhouse gases from new heat devices using coal to generate low to medium temperature (<300ºc) industrial process heat are prohibited.
• The use of existing coal heat devices must be phased out before 1 January 2037.
• Existing Industrial businesses operating at > 300ºc from fossil fuel-fired heat devices now need to apply for resource consent (as a restricted discretionary activity) and provide an emissions plan.
  
  • You can prepare an emissions plan yourself, providing you follow this guidance: Emissions Plan Guidance | EECA
• For high-emission sites (those emitting over 2,000T of CO₂) a Suitably Qualified Person (SQP) is required to prepare the plan and it must also be reviewed by one.
• For sites emitting below 500T of CO₂, there is no requirement for a SQP to prepare or review the plan.
  
  • View the list of organisations that can recommend an appropriate SQP.
  • Backup devices and space-heating devices are excluded from this regulation.

Our responsibilities

As Regional Council, with responsibility for both air quality and climate change adaptation and mitigation in Waitaha, we have been tasked with communicating the changes to producers of industrial process heat.

We are also responsible for ensuring organisations have a plan to decarbonise their industrial processes as per the targets in the NES- IPH, and for ensuring the new standards are complied with.

Detailed information and resources

Visit the Ministry for the Environment website for detailed information about the NES-IPH, or here are some other resources you may find useful:

• Energy Transition Accelerator | EECA (a resource to help businesses become more energy efficient)
• International Technology Scan - Alternative Technologies for Process Heat | EECA
• Emissions Plan Guidance | EECA
• Support for business sectors | EECA (Sector Decarbonisation Programme)
• Energy Audit Funding | EECA (help businesses with the cost of hiring a qualified energy auditor to evaluate how energy is being used in your process to reduce energy costs and carbon emissions)