The Government will discontinue funding for Are Ake, New Zealand's national energy innovation centre based in New Plymouth.
Thursday's Budget 2026 announcements outlined a broader strategy of fiscal discipline and reprioritisation within the science and research sectors.
While the budget included a $37 million boost for research commercialisation and a new technology funding pillar, standalone entities like Ara Ake lost their core financial support.
The New Energy Centre was established in 2020 with an initial $27 million Crown investment following the previous Labour government's ban on new offshore oil and gas exploration.
Regional economic development agency Venture Taranaki championed the initiative to leverage the heavy engineering expertise of the local workforce and guide the transition toward a low-emissions future.
Over the past six years, Ara Ake has played a prominent role in testing renewable energy solutions.
Just days before the budget was released, the centre published a joint action plan alongside Earth Sciences New Zealand to accelerate the use of geoheat.
The hub also recently led a project exploring whether hundreds of old Taranaki petroleum wells could be repurposed as geothermal heat sources for industry and communities.
