Genesis Energy and New Zealand Green Investment Finance (NZGIF) have teamed up on a pilot aimed at helping businesses replace fossil-fuelled heating assets with electricity.
The pilot with Van Lier Nurseries in Auckland will see its gas-fired boiler replaced with a state-of-the-art 1MW low emission heat pump to heat its greenhouses. Van Lier Nurseries produces house plants, plants for other cut flower growers and cut roses. They are the second largest producer of cut roses in New Zealand and have grown flowers since the 1970s.
Genesis will own and maintain the heat pump, which has been financed by NZGIF. The heat pump is more efficient than traditional gas boilers; in addition, Van Lier Nurseries expects to save 640 tonnes of carbon emissions per annum over the new heat pump’s 25-year life.
Van Lier Nurseries Chief Operating Officer Joanne Hurley says, “I wanted the support of a solid, robust company that had a good engineering department and great knowledge and experience of the type of equipment we were venturing into. Genesis has brought a lot of expertise, dealing with the complexities of design, integration and compliance that are well outside our understanding and skill. This has allowed us to keep focusing on our core business. We have enjoyed working with Genesis, they have been very supportive and accommodating all through the process.”
Genesis and NZGIF partnered on the pilot to test a solution for industrial companies looking for more environmentally friendly sources of energy.
Genesis’ Chief Transformation and Technology Officer Ed Hyde says companies requiring process heat were among the largest contributors to New Zealand’s energy carbon emissions.
“Electricity companies like Genesis can help industry convert from fossil-fuelled energy to electric. That’s good for industry, the country and the planet,” says Hyde.
NZGIF Chief Investment Officer Jason Patrick says if successful, the arrangement could be scaled up and offered to companies who want to avoid the upfront cost and risk of transitioning to new technology.
“This solution could make a lot of sense to many operators who want to focus on their core business without having to commit a large amount of upfront capital, and to avoid the hassle of owning and operating kit like heavy duty boilers,” says Patrick.
Genesis and NZGIF will provide the heat pump to Van Lier Nurseries on a lease-to-own arrangement, enabling Van Lier Nurseries to spread the cost of the heat pump while receiving engineering and maintenance support from Genesis.
“Genesis has worked with Van Lier Nurseries on mapping their energy needs and advising on how they could run more efficiently,” says Hyde. “The heat pump pilot will take that relationship to a new level. We will also use learnings from this pilot to refine offerings to other business customers.”
About Genesis Energy
Genesis Energy sells electricity, reticulated natural gas and LPG through its retail brands of Genesis and Frank*Energy. It is one of New Zealand’s largest energy retailers with more than 480,000 customers. The Company also generates electricity from thermal and renewable assets throughout New Zealand. It was the first electricity company in New Zealand to sign up to the internationally recognised Science Based Targets initiative, with emission reduction targets aligned to limiting global warming to 1.50C. Our commitments include helping the electrification of industry and transport, and energy management innovation for ourselves and our customers.
NZGIF is a green investment bank which was established to facilitate and accelerate investment that can help to reduce greenhouse gas emissions in New Zealand. We are a long-term, mission-driven investor, providing innovative, flexible and tailored capital solutions to support decarbonisation initiatives across a broad range of sectors. As a limited liability company independent of government, we make independent investment decisions. NZGIF invests on a commercial basis; we do not offer concessionary finance. We invest in scalable companies, technologies and products that are commercial-ready and offer low carbon benefits for New Zealand. NZGIF is not a registered bank.