Sustainable Solutions & Industry Insights – Newsletter Volume 4
TUBMAN HEATING NEWSLETTER - VOLUME 4
Navigating New Zealand's Energy Future Together
Dear Valued Customers and Suppliers,
As we continue to navigate the dynamic landscape of energy and sustainability here in New Zealand, I wanted to share some key insights from the recent Carbon and Energy Professionals (CEP) conference, which the Tubman Heating team attended. This event brought together over 150 industry leaders, including major players like Fonterra, Silver Fern Farms, Meridian, and Genesis, to discuss the critical challenges and opportunities in New Zealand’s energy and emissions future. Boilers, as you might expect, were a hot topic, and many of the discussions directly impact you, our valued customers and suppliers.
The conference highlighted several crucial points relevant to our collective journey towards a more sustainable energy future:
The Evolving Gas Landscape & Transition: It’s clear that New Zealand’s natural gas reserves are diminishing, now estimated at just 5.5 years. Energy Minister Simon Watts reaffirmed gas’s role as a transition fuel, emphasising the need for a cross-party approach to long-term energy security. This underscores the increasing importance of exploring alternative, sustainable heating solutions.
While gas remains a transition fuel, the idea that New Zealand’s natural gas supply issues can be easily solved is a major oversimplification. We face two primary challenges:
- No Immediate Import Capacity: New Zealand currently cannot import natural gas. While a floating LNG (Liquefied Natural Gas) import terminal is being explored, primarily for power generation during dry winters, building a permanent, onshore LNG terminal would be a massive and expensive undertaking, realistically taking over a decade to put in place. This is not a quick fix.
- Slow Pace of New Domestic Production: Even if new gas fields are discovered, bringing them into production takes significant time. Historically, the fastest a new field has gone from discovery to production in New Zealand is around 10 years, sometimes longer. This means relying solely on new domestic discoveries won’t rapidly increase our dwindling reserves.
Renewable Gas, Biomass & Fuel Options: There’s significant potential in New Zealand for renewable gas (biogas), with the capacity to produce more than current consumer use. The success of Ecogas, New Zealand’s first commercial biogas facility, is a testament to what’s possible, though government support will be key to scaling. Biomass also remains a vital part of the decarbonisation puzzle, despite ongoing challenges around capital investment and fuel supply.
The Economics of Boiler Decarbonisation: With an estimated $3.5–$5.0 billion investment required to decarbonise New Zealand’s boiler capacity, the primary hurdles are capital cost and fuel access, rather than technology itself. This is where strategic planning and innovative solutions become paramount.
Hybrid Boiler Systems – A Practical Path Forward: Hybrid systems, combining biomass for baseload with electrode boilers for peak demand, are gaining traction as a cost-effective and low-risk option. These systems offer significant benefits, including redundancy, grid-friendliness, fuel flexibility, and support for phased transitions, as exemplified by Open Country Dairy’s move to cut emissions.
The conference reinforced that with process heat demand projected to rise by 16% by 2050, long-term, sustainable solutions are more critical than ever. At Tubman Heating, we are incredibly proud to be at the forefront of this evolving energy landscape, supporting our clients with innovative boiler technologies, including our latest biomass boilers and heat recovery systems, tailored system design, and trusted expertise.
In this newsletter, you’ll also find updates on the gas crunch and what it means for your business, exciting news about the 20% investment boost incentive that could benefit your projects, our latest product launches, a celebration of our core value winners who embody the spirit of Tubman Heating, and details on the opening of our new Christchurch branch.
Thank you for your continued partnership as we work together to build a more sustainable and energy-secure New Zealand.
Warm regards,
Michael Buckley
Chief Executive Officer
Tubman Heating Limited
ENERGY UPDATES
Future-Proofing Your Business with Dual Fuel Burners
A bit of a shake-up is brewing in New Zealand’s energy landscape, and if you’re running an industrial or commercial operation that relies on gas, you’ll want to sit up and take notice. Warnings from the Gas Industry Company paint a clear picture: dwindling gas supplies are set to bite this year, potentially leading to both shortages and a continued climb in gas prices. For businesses, particularly those powering crucial
processes in the primary and food production sectors, this isn’t just a minor inconvenience – it’s a significant challenge to navigate.
So, what’s a business to do when faced with this “gas crunch”? At Tubman Heating, we suggest being prepared and having options. That’s where the smart move to dual fuel burners comes into play. Think of it as having a Plan B – a way to keep your operations running smoothly regardless of gas supply hiccups or price spikes.
20% Deduction on New Business Assets, Including Heating
The Government has introduced “Investment Boost,” a new tax incentive effective from 22 May 2025. This initiative allows businesses to deduct an additional 20% of the value of new productive assets, like new or upgraded heating equipment and machinery, from their taxable income in the year of purchase – on top of standard depreciation.
This significantly improves cash flow, making it more financially attractive to invest in efficient, modern heating solutions, including Tubman Heating’s new biomass boilers and heat recovery systems, ultimately lowering your upfront tax bill and accelerating your return on investment. This incentive applies to most new depreciable assets, offering a fantastic opportunity to reduce operational costs and enhance your facility’s sustainability.
Innovating Sustainable Heat Solutions
At Tubman Heating, we’re continuously expanding our range of sustainable energy solutions to meet the diverse needs of New Zealand businesses. Explore some of our latest offerings designed to boost efficiency, cut costs, and reduce your carbon footprint:
Advanced Hot Water Biomass Boilers - 0 to 1.5MW
Elevate your heating with our latest sustainable hot water solutions. Designed for industrial and commercial applications, these advanced boilers utilise renewable wood chip and wood pellet fuel, offering over 90% thermal efficiency and significant carbon emission reductions. Discover how these cost-effective, automated, and scalable boilers can help achieve your sustainability goals and reduce operating costs. Visit our website for more information.
High-Capacity Steam/Hot Water Biomass Boilers - > 1.5MW
For large industrial facilities with significant steam demands, Tubman Heating introduces our powerful, high-capacity steam biomass boilers. These sustainable solutions utilize wood chips, wood pellets, and other biofuels to deliver a reliable, cost-effective, and environmentally responsible alternative to fossil fuels, ensuring high efficiency and automated operation for your critical processes. Visit our website for more information.
Specialised Heat Recovery Systems
In partnership with industry leader Hering, we offer cutting-edge heat recovery systems designed to capture and reuse waste heat from various industrial sources. These custom-engineered solutions maximize your energy efficiency, reduce operational costs, and help your business achieve its sustainability goals by turning waste into valuable energy. Visit our website for more information.
Eco-Friendly Hot Water Heat Pumps - up to 245 KW
As New Zealand businesses seek sustainable operations, Hot Water Heat Pumps emerge as a powerful, eco-friendly heating solution. Leveraging our nation’s abundant renewable electricity, these systems significantly reduce carbon emissions while delivering exceptional efficiency and long-term cost savings for your commercial or industrial hot water needs. Visit our website for more information.
Annual Core Value Winners!
We’re thrilled to shine a spotlight on our incredible team at Tubman Heating and celebrate the individuals who truly embody our core values! These values are the backbone of everything we do, ensuring we deliver exceptional service and build a sustainable future for heating in New Zealand.
This year’s core value winners at Tubman Heating are Losi Patu for Do Great Work, Henry Booysen for Care About People, Ross Bartholomew for Drive for Growth, and David Hillyard for Do the Right Thing. A special commendation goes to Earl Gerhardt, who was recognized as the Supreme Core Value Champion for consistently embodying all of Tubman Heating’s core values.
Now Serving the South Island from Christchurch!
Got questions? Connect with our Christchurch Branch Manager, Earl Gerhardt.
christchurch@tubman.co.nz
03 371 4614
We are proud to announce the opening of our brand-new branch in Christchurch, officially establishing our presence in the South Island. This expansion means we’re now closer than ever, ready to deliver our comprehensive service and maintenance solutions with the efficiency and expertise you’ve come to rely on. Our dedicated local team is excited to support your existing heating systems and introduce you to our latest sustainable energy innovations.
You can expect the same high standard of reliable solutions and trusted partnership that our North Island customers already know.
Wood Chips vs Wood Pellet boilers
Considering biomass for your heating needs? Our latest blog post dives into the crucial differences between wood pellet and wood chip boilers. Discover which biomass fuel solution is right for your business, covering everything from cost and efficiency to system complexity. |