The Energy Efficiency Conservation Authority (EECA) in New Zealand has published a report which identifies the key obstacles to accelerating the decarbonisation of process heat and offers recommendations for industry and government for overcoming them.
Currently, a significant portion of New Zealand’s overall energy use is for process heat and over half of this is supplied by burning fossil fuels such as coal or natural gas. Achieving the reduction in carbon emissions needed to limit global temperature rises will require a significant acceleration of investment in both energy efficiency and fuel switching projects.
Given the scale of New Zealand’s fuel switching challenge, Mafic Partners was engaged by EECA to undertake a market sounding with large energy users and others in the supply chain. Mafic’s objective was to understand what stakeholders considered were the key barriers to low-carbon fuel switching and explore the merits and drawbacks of a range of potential solutions to these barriers. The market participants engaged included large industrial process heat users, long-term capital providers, and ecosystem players such as network operators, fuel suppliers and consultants.