> ## Content Index > Fetch the complete content index at: https://goodoil.news/llms.txt > Use this file to discover other available public pages before exploring further. # Subsidy of the Day - URL: https://goodoil.news/subsidy-of-the-day/ - Published: 2023-05-21T18:30:00.000Z - Updated: 2023-05-21T11:10:30.000Z - Author: Good Oil Staff - Tags: NZ, NZ Climate change, NZ Politics, Politics, #wp, #wp-post, #Import 2024-07-16 22:22 New Zealand’s largest single emissions reduction project has been announced for NZ Steel’s [Glenbrook plant.](https://www.stuff.co.nz/environment/climate-news/131769530/david-parker-failed-to-stop-nzs-11thbiggest-emitter-beating-a-climate-law?ref=goodoil.news) A deal has been struck between the government, NZ Steel and Contact Energy: > The new furnace – [to which taxpayers are contributing](https://www.stuff.co.nz/national/politics/300590527/national-attacks-corporate-welfare-in-climate-plan--except-for-the-710m-going-to-agriculture?ref=goodoil.news) up to $140 million through the Government Investment in Decarbonising Industry fund (GIDI), will dwarf the other Government projects. > > The total cost is expected to be $300 million. > > *Stuff* Who is NZ Steel? > The steel company ran at a loss during the 1970s, until 1981 when a more optimised, commercially viable method for extracting iron was implemented, leading to an expansion of the Glenbrook facilities.[\[4\]](https://en.wikipedia.org/wiki/New%5FZealand%5FSteel?ref=goodoil.news#cite%5Fnote-EvolvingAuckland12.1-4) > > In the [Think Big](https://en.wikipedia.org/wiki/Think%5FBig?ref=goodoil.news) era of New Zealand [industrialisation](https://en.wikipedia.org/wiki/Industrialisation?ref=goodoil.news), the mill was upgraded. In 1987, New Zealand Steel was acquired by Equiticorp. Equiticorp was bankrupted in the New Zealand [sharemarket crash of 1987](https://en.wikipedia.org/wiki/Black%5FMonday%5F%281987%29?ref=goodoil.news). In 1989 New Zealand Steel was acquired by Helenus Corporation, which consisted of [Fisher & Paykel](https://en.wikipedia.org/wiki/Fisher%5F%26%5FPaykel?ref=goodoil.news), Steel & Tube, [ANZ Bank](https://en.wikipedia.org/wiki/ANZ%5FBank%5FNew%5FZealand?ref=goodoil.news) and [BHP](https://en.wikipedia.org/wiki/BHP?ref=goodoil.news). In 1992, BHP took up a controlling interest with an 81 per cent shareholding by acquiring the shares of Fisher & Paykel and Steel & Tube. The company was initially renamed BHP New Zealand Steel Limited, but in 2002 it was renamed New Zealand Steel when BHP Steel was listed on the [Australian Securities Exchange](https://en.wikipedia.org/wiki/Australian%5FSecurities%5FExchange?ref=goodoil.news) as [BlueScope](https://en.wikipedia.org/wiki/BlueScope?ref=goodoil.news).[\[6\]](https://en.wikipedia.org/wiki/New%5FZealand%5FSteel?ref=goodoil.news#cite%5Fnote-NZSteel%5Fhistory-6) > > [Wikipedia](https://en.wikipedia.org/wiki/New%5FZealand%5FSteel?ref=goodoil.news) But following *Stuff*’s link to prior news (19 April 2023), we read: > The mill has little financial incentive to shrink its carbon dioxide emissions because it’s part a scheme \[*sic*\] to shield big-polluting exporters from carbon costs that might make them less competitive overseas. > > NZ Steel – which, despite the “NZ” in its name, is owned by an Australian company, Bluescope – receives 90 per cent of its greenhouse gases cost-free from the Government [under this exemption to the Emissions Trading Scheme](https://www.stuff.co.nz/environment/climate-news/300847622/the-government-wanted-to-improve-a-law-on-major-polluters-it-might-be-worse?ref=goodoil.news). In the year to June, Bluescope [received free carbon credits worth $117m from the New Zealand Governmen](https://www.stuff.co.nz/business/130935028/tasman-steel-posts-340m-profit-with-benefit-of-117m-of-free-carbon-credits?ref=goodoil.news)t – in fact, the ASX-listed company [has been the country’s single biggest recipient of free carbon credits](https://www.stuff.co.nz/environment/climate-news/116695150/free-carbon-credits-worth-billions-will-continue-being-allocated-for-decades?rm=a&ref=goodoil.news) over the years. > > *[Stuff](https://www.stuff.co.nz/environment/climate-news/131769530/david-parker-failed-to-stop-nzs-11thbiggest-emitter-beating-a-climate-law?ref=goodoil.news)* Prime Minister Chris Hipkins said, “This project dwarfs anything we have done to date. Alone, it will eliminate one per cent of the country’s total annual emissions.” > Minister for Energy Megan Woods said the furnace conversion would reduce emissions more than all the Government’s other projects combined. > > *[Stuff](https://www.stuff.co.nz/national/politics/132102525/government-announces-massive-emissionscutting-deal-with-nz-steel-contact-energy?ref=goodoil.news)* [Christopher Luxon and David Seymour had this to say](https://www.newshub.co.nz/home/politics/2023/05/christopher-luxon-blasts-government-s-outrageous-spend-on-emissions-cutting-deal-with-nz-steel.html?ref=goodoil.news). Yesterday Neil Oliver discussed the green agenda push. [Here’s a dose of sanity](https://www.youtube.com/watch?v=kD9KG-j7C0M&ref=goodoil.news). Discuss it on *The BFD.* [If you would like to access exclusive Member content or just remove the ads to make your reading experience more enjoyable click here to browse our Membership options.](https://thebfd.co.nz/subscription-plans/?ref=2) [If you enjoyed this article please share it using the share buttons at the top or bottom of the article.](#)