New regulations for greenhouse gas emissions from industrial process heat

New regulations for fossil-fuel-fired boilers and industrial process heat

The operation of fossil fuel-fired boilers, including gas-fired boilers, now requires a resource consent, a regulation that applies across all regional councils in New Zealand. This change stems from an amendment to section 104 of the Resource Management Act, which mandates that regional councils consider the effects of greenhouse gas emissions when assessing resource consent applications. 

In line with this amendment, the National Policy Statement (NPS) for Greenhouse Gas Emissions from Industrial Process Heat, and the National Environmental Standards (NES) for Greenhouse Gas Emissions from Industrial Process Heat, were introduced. These regulations have been in effect since July 2023, requiring regional councils to implement the NPS and adhere to the NES guidelines. 

The new regulations target industries that utilise fossil fuels in heat-generating devices such as boilers, furnaces, engines or other combustion equipment to produce industrial process heat, which results in greenhouse gas (GHG) emissions. These regulations, however, do not extend to emissions from non-fossil fuels used in industrial processes, electricity generation, or the use of fossil fuel-fired heat devices for space and water heating in commercial buildings. 

Guidance 
To assist councils and industries in understanding and complying with these regulations, the Energy Efficiency and Conservation Authority (EECA) has published non-statutory guidance and information. This guidance is designed to help with the preparation and assessment of emissions plans, which are required as part of a discharge to air resource consent application. 

The Emissions Plan Guidance is particularly valuable for regional councils, providing them with the necessary tools to implement the regulations effectively within their regions. It outlines the approach to preparing and assessing emissions plans, ensuring compliance with the new requirements. Additionally, this guidance is beneficial for industry professionals, especially consultants who are tasked with developing emissions plans, and for applicants seeking resource consents. 

While the new regulations do not outright ban the continued operation of fossil fuel boilers, they introduce more stringent criteria, making it more challenging to obtain renewal of a resource consent. Operators of fossil fuel-fired boilers, including gas-fired boilers, will be particularly impacted as their resource consents come up for renewal. The specific requirements for renewing resource consents for gas-fired boilers are detailed in clauses 10 to 19 of the NES. 

Plan ahead  
At Powerco, we encourage industries using fossil fuel-fired heat devices to plan ahead and consider electrification. Engaging with us early can provide valuable support and insights for a smooth transition. By planning proactively, you can ensure compliance, reduce emissions and contribute to a sustainable future.