NZ Government unveils a $27.75 million Low Emissions Heavy Vehicle Fund to accelerate the adoption of zero and low-emission heavy vehicle
Announced by energy minister Simeon Brown and climate change minister Simon Watts, Low Emissions Heavy Vehicle Fund (LEHVF) is part of Budget 2024, aimed at offsetting the purchase prices of low and zero-mission heavy vehicles.
“Boosting economic growth and productivity is a key part of the Government’s plan to rebuild the economy. The LEHVF will offset upfront costs for businesses, enabling them to increase productivity with vehicles that are cheaper to operate,” the ministers say.
The fund will cover up to 25% of the cost of new zero and low-emissions heavy vehicles and up to 25% of the cost of converting existing higher-emitting heavy vehicles to be powered by low-emissions technology.
“EECA’s modelling estimates up to 500 diesel-only vehicles would likely be replaced by mostly zero-emissions vehicles by 2028, as well as some low-emissions hybrid vehicles as a result of the Low Emissions Heavy Vehicle Fund,” minister Watts says.
“While this is a one-time initiative, there will be cumulative emissions benefits over the lifecycle of these low-emissions heavy vehicles. Initial estimates indicate that switching 500 diesel-only vehicles to zero and low-emissions alternatives will prevent 366,622 tonnes of carbon dioxide equivalent emissions.”
Hyundai electric and hydrogen trucks eligible for government grant
In line with the government’s initiative, Hyundai New Zealand announced that its Mighty Electric light-duty truck and XCIENT Hydrogen heavy-duty truck are eligible for grants.
“This initiative represents a significant step forward for New Zealand’s transport sector,” says Grant Doull, national manager of hydrogen and eco commercial vehicles for Hyundai New Zealand.
“We are proud to offer these advanced Electric and Hydrogen solutions and support businesses in making a positive environmental impact.”
LEHVF grant details
- Up to 25% of the purchase price for new zero-emissions vehicles, including battery electric and hydrogen fuel cell electric models.
- Up to 25% of the conversion cost for Internal Combustion Engine (ICE) vehicles first registered in New Zealand between 1 August 2022 and 1 August 2024, converted to zero-emissions vehicles.
- Up to 25% of the purchase price for new low-emission vehicles such as plug-in diesel-electric hybrids and hydrogen-diesel dual-fuel vehicles.
- Up to 25% of the conversion cost for new ICE vehicles or used ICE vehicles first registered in New Zealand between 1 August 2022 and 1 August 2024, to run on low-emissions technologies.
The LEHVF will be reviewed in six months to ensure it meets its objectives.