New Pathway to Help NZ Breweries Reduce Fossil Fuel Reliance

hand holding a glass of beer

EECA (the Energy Efficiency and Conservation Authority) is helping New Zealand breweries reduce their energy-related emissions through a newly launched Brewing Decarbonisation Pathway.

The five-step pathway, endorsed by the Brewer's Guild of New Zealand, supports breweries through knowledge sharing and encourages collective action to decrease the industry's contribution to climate change.

The pathway takes an energy efficiency first approach. While the ultimate goal is to shift away from fossil fuels, the pathway focuses on achievable steps to improve existing processes, equipment and operations that will make the transition more simple and cost-effective.

"Businesses across New Zealand contribute around 40 percent of our energy-related emissions, and it is not only our biggest businesses which can be looking at their role in this," said Nicki Sutherland, EECA Group Manager, Investment and Engagement.

"Many small to medium-sized businesses currently rely on fossil fuels like gas and coal, so we are working with specific sectors like brewing to help them tackle the problem.

"In addition to supporting New Zealand's climate targets, decarbonising will help future-proof the sector, help it innovate, and reduce energy costs."

Breweries are one of the first sectors to be supported through EECA's Sector Decarbonisation Programme.

According to EECA, fossil fuel use of the average New Zealand brewery is currently responsible for around 80 percent of production-related emissions – mainly through LPG and natural gas use for boiling 'wort' before it is fermented into beer.

"What's great for brewing is that there is a high proportion of addressable energy-related carbon emissions," said Sutherland.

"The brewing sector was also really proactive in engaging with us and open to trying something new."

New Zealand's brewing industry is world-class, contributing around $2.8 billion to the New Zealand economy and supporting roughly 6,632 jobs directly and indirectly last year.

Some breweries in New Zealand have made fantastic progress with emissions reductions. But, it is by taking a sector-wide approach and being open to sharing industry knowledge and expertise with peers that brewing is paving the way.

The Sector Decarbonisation Pathway sits in parallel with an expanded Government Investment in Decarbonising Industry Fund (GIDI) – which the Government announced in May 2022.

"All businesses are constantly juggling priorities and having to make tough decisions about where to put their resources – especially at the moment," said Sutherland.

"It's been so valuable to work with the Brewers Guild to help us properly understand the unique challenges and opportunities our breweries are facing. We've also learned lessons we can apply in other business sectors."

Recent research findings showed that around 63 percent of New Zealand businesses believe it will be hard to reduce greenhouse gas emissions without increasing costs. Meanwhile, other barriers stem from the perception that any change to the current process may impact product quality. However, on the contrary, decreasing business impact on the environment can also drive customer interest.

By signing up, breweries gain free access to bespoke tools, resources, and best-practice advice, developed with support from industry experts, which can help lessen operational costs and energy-related emissions.

Among the resources on offer is an 'Energy Benchmarking Tool', tailor-made for New Zealand breweries, that helps measure energy use and energy intensity and compares these to an industry benchmark.

"We think this is a really great opportunity for brewers to do what they do best. The industry is full of creativity and innovation in the way they develop and market their products."