The Government Investment in Decarbonising Industry (GIDI) Fund
The Government is working in partnership with business to accelerate the decarbonisation of process heat in industry and stimulate the domestic economy supporting employment. If you have a carbon reduction plan and are looking to accelerate it, your project may be eligible for funding.
ROUND 2 IS CLOSED
Successful applicants will be announced late September, 2021. Applications for Round 3 will open in the next few months.
Successful projects from the first round were announced in March by Minister for Energy and Resources Dr Megan Woods at WoolWorks and McCain Foods in Timaru.
In total 14 companies will receive $22.88m in co-funding to help their businesses transition away from fossil fuels.
They have combined emissions savings the equivalent of taking 49,000 cars off the road.
KEY DATES FOR ROUND 2
- Round 2 RFP opens: Thursday 15 April 2021
- Applicant Briefing Session: 11am, Tuesday 27 April 2021 (via Teams)
- Deadline for questions: 4pm, Friday 30 April 2021
- Deadline for proposals: 5pm, Monday 17 May 2021
- Applicants notified of outcome: from 4 August 2021
- Announcement of results: by 30 September 2021.
The consideration and approval process will take up to four months, with a final decision by the Minister and EECA Board expected at the end of August 2021, and notification of results to be sent to applicants soon after that. A full explanation of the process and key dates are outlined in the Request for Proposal document linked below.
KEY DOCUMENTS FOR ROUND 2
Please email GIDIFund@eeca.govt.nz with any questions.
APPLICANT BRIEFING SESSION
A briefing session for all interested Applicants was held on Tuesday 27 April 2021.
View the briefing at the link below.
ROUND 2 INVESTMENT FOCUS
To decarbonise industrial processes and process heat through energy efficiency, technology innovation, and fuel switching. If you would like to discuss the investment focus of the fund or your potential project, please contact the EECA GIDI Contestable Fund Lead at GIDIFund@eeca.govt.nz.
HOW MUCH CAN I APPLY FOR?
You should only apply for the amount of government co-investment necessary to get your sustainable, decarbonisation project across the line or brought forward significantly.
The assessment of possible co-funding will be applied to the incremental cost of the project when compared to a ‘business as usual’ case.
Your project will need to have a total capital cost of greater than $500k, and applications to the GIDI Fund for individual projects should normally not exceed $5m for an individual project.
Cumulative group projects (including the Applicant’s group of companies) must not exceed 25% of the total Fund ($17.25m).
Applications may be considered that exceed these levels, at the discretion of the EECA Chief Executive, EECA Board or the Minister.
WHO CAN APPLY?
The GIDI Fund is open to all New Zealand-based and NZBN registered private sector businesses that use fossil fuels as the source of energy in their industrial processes and process heat.
Your organisation must have committed to a carbon reduction pathway and have a plan to deliver on it.
HOW TO APPLY?
When Round 3 opens, an online application form and full instructions will be available here.
If you have any questions, please contact the EECA GIDI Contestable Fund Lead at GIDIFund@eeca.govt.nz.
FOR CLARITY, THE FOLLOWING TYPES OF ORGANISATIONS ARE NOT ELIGIBLE FOR THE FUND:
- State and public sector organisations
- Local Government organisations including both Local and Regional Authorities and
- Council Controlled Organisations (CCOs)
The proposed project has to be New Zealand based, though can use overseas suppliers if necessary.
WHAT’S THE APPLICATION PROCESS?
EECA will run a minimum of three contestable funding rounds at a rate of approximately three per year. Applicants submit a proposal in response to the published RFP for each round.
An assessment panel made up of EECA and MBIE technical and investment experts evaluate eligible proposals against the defined criteria and makes funding recommendations.
Based on recommendations from the Panel, EECA may negotiate aspects of the project with the Applicant.
The panel’s final funding recommendations will then go to the EECA Chief Executive, EECA Board and the Minister of Energy and Resources as required through the approval delegation hierarchy.
All eligible Applicants will be notified of their success or otherwise on completion of the approval process. EECA and the successful Applicants will execute EECA Project Funding Agreements for the delivery of the projects.
WHEN WOULD I RECEIVE THE CO-FUNDING?
EECA works with successful Applicants to put contracts in place and share results. Co-funding is paid out when projects reach agreed milestones and agreed reports and supporting information are provided which are detailed in the Project Funding Agreement.