All coal boilers to be removed from New Zealand public hospitals

• 2025 will see final shift away from coal in hospitals and tertiary institutions
• Over $78 million invested in 38 projects to decarbonise the state sector – the equivalent of taking 21,100 cars off the road
• Health sector decarbonisation gets the lion’s share (over $61m)

All remaining coal boilers will be removed from hospitals and tertiary institutions by the end of 2025, Climate Minister James Shaw has announced, as part of new plans to speed up emissions reductions at hospitals and government departments.

“We can now guarantee an end to dirty, polluting, and unhealthy coal-powered boilers in our hospitals and universities. This means patients will be treated in hospitals that are running on clean energy, and our health care workers and students will be going to work at a place with cleaner air, says Climate Minister James Shaw.

“In total over $78 million will co-fund 38 new government decarbonisation projects, including heating and cooling, fleet electrification and efficient lighting projects across the state sector, to accelerate the shift we must make away from fossil fuels.

“The burning of fossil fuels – coal, oil and gas – is the primary cause of climate change, while polluting the air, and harming health – so ensuring our places of learning and our hospitals kick this habit is the obvious choice,” said James Shaw.

The removal of the 14 remaining coal boilers that supply energy to public hospitals, across eight different sites, is set to reduce emissions in the health sector by around 203,760 tonnes of CO2 equivalent over the next 10 years – the equivalent of taking 8385 cars off the road.

A total of $61.729 million is going to health sector decarbonisation projects. This includes $38 million to support Te Whatu Ora’s new $99 million plan to reduce stationary energy emissions across New Zealand hospitals by around 230,000 tonnes over ten years.  

Energy Minister Megan Woods says health is one of the largest emitters of carbon emissions in the public sector, and these projects will help to bring these emissions down, faster.

“It’s great Middlemore Hospital is championing the kind of changes we want to see, with a range of decarbonisation projects including, a chiller replacement, an LED lighting upgrade, and a heat pump that utilises waste heat to significantly reduce the hospital’s gas and electrical consumption,” Megan Woods said.

“This is the kind of energy transition we need to take us toward a low-emissions economy,” Megan Woods said.

“Middlemore’s gas boiler project alone – will see 1,866 tonnes of carbon emissions reductions per annum. That’s equivalent to 265 passengers flying from Auckland to London and back,” James Shaw said.

“In total these 38 projects are set to reduce the emissions of the public sector by around 512,775 tonnes of carbon emissions over the next ten years – the equivalent of taking 21,100 cars off the road – or more than every car in Queenstown,” said James Shaw.

The funding is allocated from the Government’s $220 million State Sector Decarbonisation Fund which supports the Carbon Neutral Government Programme and is administered by EECA (the Energy Efficiency and Conservation Authority).

The full list of projects announced today:  

Tranche 11 

Department of Corrections - $0.581 million to purchase electric vehicles and install charging infrastructure (21 vehicles). The Department of Corrections will invest $0.749 million from its own budget. EECA estimates this project will reduce carbon emissions by around 540 tonnes over 10 years (around 54.0 tonnes per annum on average over 10 years).    

Te Whatu Ora (Lakes) - $0.063 million to install efficient LED lighting at Rotorua Hospital. Te Whatu Ora – Lakes will invest $0.188 million from its own budget. EECA estimates this project will reduce carbon emissions by around 169 tonnes over 10 years (around 16.9 tonnes per annum on average over 10 years).    

Te Whatu Ora (Capital, Coast and Hutt) - $0.144 million for an energy efficient water cooling project at Wellington Regional Hospital. Te Whatu Ora – Capital, Coast and Hutt will invest $0.216 million from its own budget. EECA estimates this project will reduce carbon emissions by around 187 tonnes over 10 years (around 18.7 tonnes per annum on average over 10 years).    

Te Whatu Ora (Bay of Plenty) - $2.023 million to purchase electric vehicles and install charging infrastructure (60 vehicles). Te Whatu Ora – Bay of Plenty will invest $2.080 million from its own budget. EECA estimates this project will reduce carbon emissions by around 1798 tonnes over 10 years (around 179.8 tonnes per annum on average over 10 years).   

Te Whatu Ora (Bay of Plenty) - $0.025 million to install efficient LED lighting at Tauranga Hospital. Te Whatu Ora – Bay of Plenty will invest $0.075 million from its own budget. EECA estimates this project will reduce carbon emissions by around 104 tonnes over 10 years (around 10.4 tonnes per annum on average over 10 years).    

Te Whatu Ora (Southern) - $2.200 million to convert three coal boilers to biomass fuel at the Dunedin Energy Centre. EECA estimates this will reduce carbon emissions by around 147,740 tonnes over the next ten years (around 14,774 tonnes per annum on average over 10 years).   

Te Whatu Ora (Northern) - $0.390 million to replace two natural gas boilers with hot water heat pumps at Whangarei Hospital. Te Whatu Ora – Northern will invest $0.585 million from its own budget. EECA estimates this project will reduce carbon emissions by around 1100 tonnes over 10 years (around 110.0 tonnes per annum on average over 10 years).  

Tranche 12 

Te Whatu Ora - $12.000 million to 100% fund the replacement of all remaining coal boilers across its hospital sites. EECA estimates that these projects will reduce carbon emissions by around 56,020 tonnes over 10 years (around 5,602 tonnes per annum on average over 10 years).  

 Te Whatu Ora (Tairawhiti) - $3.000 million to replace a gas boiler at Gisborne Hospital with a low emissions alternative. Te Whatu Ora – Tairawhiti will invest $2.000 million from its own budget. EECA estimates that this will reduce carbon emissions by around 18,700 tonnes over 10 years (around 1,870 tonnes per annum on average over 10 years).   

 Te Whatu Ora (Counties Manukau) - $1.086 million for a heat recovery project at Middlemore Hospital, that will reduce Natural Gas demand on boilers. Te Whatu Ora – Counties Manukau will invest $1.629 million from its own budget. EECA estimates that this will reduce carbon emissions by around 18,660 tonnes over 10 years (around 1,866 tonnes per annum on average over 10 years).   

Tranche 13 

 Te Whatu Ora (Te Toka Tumai Auckland) - $1.255 million to purchase electric vehicles and install charging infrastructure (40 vehicles). Te Whatu Ora – Te Toka Tumai (Auckland) will invest $1.255 million from its own budget. EECA estimates that this will reduce emissions by around 693 tonnes over 10 years (around 69.3 tonnes per annum on average over 10 years). 

Victoria University - $0.125 million to install efficient LED lighting at their Kelburn Campus (Cotton and Laby buildings). Victoria University will invest $0.376 million from its own budget. We estimate that this will reduce emissions by around 670 tonnes over 10 years (around 67.0 tonnes per annum on average over 10 years).

Auckland University of Technology (AUT) - $2.320 million to replace two fossil gas boilers and two chillers at their WH and WM buildings. The current system includes two fossil gas boilers which provide space heating and domestic hot water (DHW), and two chillers which use the harmful R22 refrigerant at these buildings. AUT will replace these with heat pump technology and systems which use a low GWP refrigerant. AUT will invest $3.480 million from its own budget. We estimate that this will reduce emissions by around 4,820 tonnes over 10 years (around 48.2 tonnes per annum on average over 10 years). 

Lincoln University - $0.160 million to upgrade their HVAC system which will support demand reduction at the site (including reducing the load on their coal boiler being replaced with co-funding approved in Tranche Three of SSDF). Lincoln University will invest $0.240 million from its own budget. We estimate that this will reduce emissions by around 1595 tonnes over 10 years (around 15.9 tonnes per annum on average over 10 years). 

Lincoln University - $0.048 million to install efficient LED lighting at the New Zealand Biotron Research Facility. Lincoln University will invest $0.144 million from its own budget. We estimate that this will reduce emissions by around 126 tonnes over 10 years (around 12.6 tonnes per annum on average over 10 years).  

Massey University - $0.534 million to replace five fossil gas boilers at their library on the Albany campus. The boilers currently provide space heating and domestic hot water (DHW), which will be replaced with hot water heat pumps. Massey University will invest $0.801 million from its own budget. We estimate that this will reduce emissions by around 749 tonnes over 10 years (around 74.9 tonnes per annum on average over 10 years).  

Southern Institute of Technology (SIT) - $1.322 million to replace two coal boilers at their Invercargill campus. Southern Institute of Technology will invest $0.881 million from its own budget. We estimate that this will reduce emissions by around 3,680 tonnes over 10 years (around 368 tonnes per annum on average over 10 years).  

Southern Institute of Technology (SIT) - $0.050 million to install efficient LED lighting at their Invercargill campus. Southern Institute of Technology will invest $0.150 million from its own budget. We estimate that this will reduce emissions by around 313 tonnes over 10 years (around 31.3 tonnes per annum on average over 10 years).  

Scion - $0.719 million to replace a chiller which uses harmful refrigerant R22 with two smaller, more efficient models (with low GWP) at their Rotorua site. Scion will invest $1.078 million from its own budget. We estimate that this will reduce emissions by around 1,891 tonnes over 10 years (around 189.1 tonnes per annum on average over 10 years). Health 

Tranche 14 

Health

Te Whatu Ora - $38.000 million to support their Stationary Energy Transition Programme. Te Whatu Ora will invest $61.000 million from their budget. The programme is estimated to reduce stationary energy emissions across New Zealand hospitals by around 230,000 tonnes over ten years (around 23,000 tonnes per annum on average over 10 years).  

Te Whatu Ora (Canterbury) - $0.753 million to purchase battery electric vehicles and install charging infrastructure (25 vehicles). Te Whatu Ora – Canterbury will invest $0.754 million from its own budget. We estimate that this will reduce carbon emissions by around 831 tonnes over 10 years (around 83.1 tonnes per annum on average over 10 years). 

Te Whatu Ora (Whanganui) - $0.790 million to purchase electric vehicles and install charging infrastructure (24 vehicles). Te Whatu Ora – Whanganui will invest $0.789 million from its own budget. We estimate that this will reduce carbon emissions by around 838 tonnes over 10 years (around 83.8 tonnes per annum on average over 10 years). 

Universities 

Massey University - $2.772 million to replace 18 gas boilers across its Albany, Manawatu and Wellington campuses with heat pump technology. Massey University will invest $4.159 million from its own budget. We estimate that this will reduce carbon emissions by around 5,404 tonnes over 10 years (around 540.4 tonnes per annum on average over 10 years). 

Massey University - $0.516 million to replace a chiller at their Albany campus with a more efficient model that uses a lower GWP refrigerant. Massey University will invest $0.774 million from its own budget. We estimate that this will reduce carbon emissions by around 512 tonnes over 10 years (around 51.2 tonnes per annum on average over 10 years). 

Massey University - $0.115 million to install efficient LED lighting at its Manawatu campus. Massey University will invest $0.344 million from its own budget. We estimate that this will reduce carbon emissions by around 440 tonnes over 10 years (around 44 tonnes per annum on average over 10 years). 

Victoria University of Wellington - $0.112 million to replace a fossil gas boiler in the Von Zedlitz building at their main Kelburn Campus with a low emissions alternative. Victoria University will invest $0.168 million from its own budget. We estimate that this will reduce carbon emissions by around 1,487 tonnes over 10 years (around 148.7 tonnes per annum on average over 10 years). 

University of Canterbury -$4.500 million to replace the coal boiler at their Dovedale campus. The University of Canterbury will invest $4.500 million from its own budget. We estimate that this will reduce carbon emissions by around 9,509 tonnes over 10 years (around 950.9 tonnes per annum on average over 10 years).  

Lincoln University - $0.200 million to replace two chillers across their RFH and Asurequality buildings on their main campus and install upgrades to a chiller at the New Zealand Biotron Research Facility which will make it more efficient, as well as extend its lifespan and allow it to use low GWP refrigerant. Lincoln University will invest $0.299 million from its own budget. We estimate that this will reduce carbon emissions by 1,441 tonnes over 10 years (around 144.1 tonnes per annum on average over 10 years).  

Lincoln University - $0.010 million to install efficient LED lighting at their Johnstone Memorial Laboratory. Lincoln University will invest $0.032 million from its own budget. We estimate that this will reduce carbon emissions by 86 tonnes over 10 years (around 8.6 tonnes per annum on average over 10 years).  

University of Otago - $0.122 million to replace a coal boiler at its Invercargill campus. The University of Otago will invest $0.184 million from its own budget. We estimate that this will reduce carbon emissions by around 420 tonnes over 10 years (around 42 tonnes per annum on average over 10 years). Note this coal boiler has low annual emissions relative to other SSD Funded coal boiler replacements due to the low stationary energy demands at the University’s Invercargill campus.  

University of Otago - $0.234 million to install efficient LED lighting in the physiotherapy building at their Dunedin campus. The University of Otago will invest $0.703 million from its own budget. We estimate that this will reduce carbon emissions by around 417 tonnes over 10 years (around 41.7 tonnes per annum on average over 10 years). 

Other 

Ministry of Business, Innovation and Employment (MBIE) -$1.082 million to purchase electric vehicles and install charging infrastructure (35 vehicles). MBIE will invest $1.081 million from its own budget. We estimate that this will reduce carbon emissions by around 478 tonnes over 10 years (around 47.8 tonnes per annum on average over 10 years). 

Department of Internal Affairs (DIA) - $0.284 million to install efficient LED lighting at their Wellington and Auckland based Archives New Zealand buildings. DIA will invest $0.853 million from its own budget. We estimate that this will reduce carbon emissions by 1,524 tonnes over 10 years (around 152.4 tonnes per annum on average over 8.6 years). 

AgResearch - $0.104 million to replace three chillers across their campuses with more efficient models which use low GWP refrigerant. AgResearch will invest $0.155 million from its own budget. We estimate that this will reduce carbon emissions by 802 tonnes over 10 years (around 80.2 tonnes per annum on average over 10 years). 

GNS Science - $0.021 million to install efficient LED lighting its Avalon campus. GNS Science will invest $0.064 million from its own budget. We estimate that this will reduce carbon emissions by 127 tonnes over 10 years (around 12.7 tonnes per annum on average over 8.6 years). 

Te Papa - $0.092 million to purchase electric vehicles and install charging infrastructure (4 vehicles). Te Papa will invest $0.110 million from its own budget. We estimate that this will reduce carbon emissions by around 66 tonnes over 10 years (around 6.6 tonnes per annum on average over 10 years). 

Lotteries NZ - $0.195 million to purchase electric vehicles and install charging infrastructure (6 vehicles). Lotteries NZ will invest $0.202 million from its own budget. We estimate that this will reduce carbon emissions by around 234 tonnes over 10 years (around 23.4 tonnes per annum on average over 10 years). 

National Institute of Water and Atmospheric Research (NIWA) - $0.070 million to purchase electric vehicles and install charging infrastructure (2 vehicles). NIWA will invest $0.081 million from its own budget. We estimate that this will reduce carbon emissions by around 58 tonnes over 10 years (around 5.8 tonnes per annum on average over 10 years).