Van Lier Nurseries Heat Pump Transition Project
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Van Lier Nurseries
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Pacific Energy
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Auckland, New Zealand
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Replacement of 2MW natural gas boiler with industrial heat pump system
Overview
Van Lier Nurseries, New Zealand's leading cut flower grower with over 1.5 hectares of glasshouses, relies on precise temperature control for successful propagation and cultivation. Their existing process heat was provided by a 2MW natural gas boiler. In 2022, the business faced an existential risk as gas supply contracts became difficult to secure, and prices skyrocketed due to national supply constraints.
In response, Van Lier engaged Pacific Energy — through an introduction by Total Utilities — to urgently develop a viable alternative solution that could meet operational needs, deliver long-term savings, and be eligible for co-funding under Round 2 of the Government Investment in Decarbonising Industry (GIDI) programme.
The Challenge
Critical Dependence on Gas: Temperature control is vital to Van Lier's business, but a secure gas supply could not be guaranteed.
Rapid Market Shifts: Natural gas prices had increased up to threefold, with output from major fields like Pohokura falling sharply.
Risk of Job Losses: A disruption in boiler operations would have drastically impacted production, forcing operational cutbacks and staff reductions.
Funding Deadline Pressure: EECA's GIDI Round 2 was closing in two weeks, requiring a fully scoped, costed, and defensible proposal within an extremely short timeframe.
Pacific Energy’s Role
Pacific Energy took full ownership of the concept development, financial modelling, and submission preparation, delivering:
Rapid Feasibility Assessment: Reviewed options including biomass, electrode boiler, and industrial heat pump.
Technology Selection: Biomass was rejected due to storage space limitations; electrode boilers were dismissed due to grid upgrade implications. A large-scale ammonia heat pump was identified as the most viable and efficient alternative.
Conceptual Engineering: Designed a system that integrated with the existing buffer tank and reticulation system, including upgrades to the site’s electrical infrastructure.
Cost and Performance Modelling: Developed capital cost estimates and modelled energy savings based on expected Coefficient of Performance (COP), projecting over $400,000/year in energy cost reductions.
Financial Business Case: Produced a full financial assessment including IRR, NPV, payback, and lifecycle economics.
Funding Application: Created and submitted a comprehensive GIDI proposal with full technical and commercial documentation.
Results and Impact
The project was selected as one of 23 successful proposals in EECA's GIDI Round 2, securing $215,000 in government funding. The transition to a high-efficiency heat pump is projected to:
Reduce annual energy costs by $400,000+
Cut carbon emissions by 930 tonnes per year
Eliminate exposure to volatile fossil fuel markets
Pacific Energy continues to lead the detailed design phase, ensuring seamless integration and delivery.
About Van Lier Nurseries
Van Lier Nurseries is a family-owned horticultural business operating for over 50 years, specialising in cut flower propagation and the country’s largest range of rose varieties. They are a key employer in the region and a vital part of New Zealand’s horticultural economy.
About Pacific Energy
Pacific Energy is a New Zealand-based engineering and project delivery firm focused on renewable energy, industrial energy optimisation, and embedded generation. We provide independent, technically rigorous support from feasibility through to commissioning — reducing risk and ensuring practical outcomes for both industrial and public-sector clients.
