$1.2B loan-guarantee scheme to help businesses cut natural-gas use
Issued by Hon Nicola Willis (Finance), Hon Simeon Brown (Energy), Hon Shane Jones (Associate Energy — NZ First)
What happened
A new scheme makes up to $1.2 billion in bank loans available to businesses cutting reticulated natural-gas use, with the Crown guaranteeing 80% of each loan (max $50M per loan). Eligible firms use at least 1,000 GJ of gas per year and must achieve at least 15% gas savings while maintaining or increasing production. Target sectors: food processors, brewers, hotels, aged-care facilities, commercial greenhouse growers. Budget allocates $48M to cover loan losses plus $5.9M for EECA support. If fully deployed, expected to cut up to 10 PJ of annual gas use. Scheme runs three years; loans repayable within ten.
What's at stake
- Who feels it
- Industrial gas users — food processors, brewers, hotels, aged care, commercial greenhouses; EECA; participating banks
- Money in play
- Up to $1.2B in loans (80% Crown-guaranteed); $48M Budget cover for losses; $5.9M EECA support
- Timing
- Three-year scheme; loans repayable within 10 years
- How it works
- Operational scheme via EECA and Crown lending guarantees; no new legislation required
- Key context
- Threshold is 1,000 GJ annual gas use plus a minimum 15% gas-savings commitment with maintained production. Switching options include electricity, bioenergy, efficiency upgrades.
- Wider effects
- Direct effect on NZ gas-supply market; flow-on demand for electrification and bioenergy capex. Could compress gas demand by up to 10 PJ/yr if fully subscribed.
Who feels it
Source on record
https://www.beehive.govt.nz/release/loans-help-businesses-transition-away-gasTracked neutrally by LexNZ. Status reflects the primary source as of 25 May 2026. Not legal advice.
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