Government announces sudden closure of new energy innovation centre Ara Ake

Friday, 29 May 2026

The Government has quietly announced the sudden closure of New Zealand’s new energy innovation centre Ara Ake.

The plan to close the New Plymouth-based centre, created in the wake of Labour’s 2020 offshore oil and gas exploration ban, was included in Thursday’s Budget.

The organisation’s funding would instead be transferred into a broader package of $77 million to re-prioritise energy spending, which the Government redirected toward energy efficiency, solar grants for schools, and the Gas Transition Loan Guarantee Scheme.

New Plymouth Labour candidate Amanda Clinton-Gohdes said she was appalled at the decision which she said was extremely short-sighted and cut energy innovators off at the knees.

She believed Ara Ake had been playing a crucial role in developing energy technology that could be exported to the world.

“It shows this government is not interested in finding new ways to finding new energy,” she said.

“It’s really pulling the rug out from the organisation, as well as the innovators and entrepreneurs who they had been supporting.

“Ara Ake had been doing a great job and to have their funding cancelled without any warning is a kick in the guts.”

New Plymouth MP David MacLeod revealed Minister of Energy Simon Watts looked to identify savings in the sector and avoid duplication within Government departments and found it was happening with Ara Ake and the Energy Efficiency & Conservation Authority.

“I know very well this decision will have an impact on the Ara Ake team and they along with the board deserve thanks for the contributions they’ve made to the energy sector,” he said.

“The Government is committed to ensuring there is affordable and reliable energy for Kiwi households and businesses and we’re making the decisions needed to achieve this.”

Up to 12 jobs were expected to be lost as a direct result of the funding, with Ara Ake expected to shut its doors within a month.

Taranaki Chamber of Commerce chief executive Arun Chaudhari was also disappointed by the decision to discontinue Crown funding for Ara Ake which he believed had become an important catalyst for innovation, collaboration and investment across the energy sector.

“The chamber has seen first-hand the value Ara Ake brings in helping position Taranaki as a national leader and facilitator in future energy solutions,” he said.

“At a time when New Zealand is grappling with energy security, affordability and de-carbonisation challenges, stepping back from long-term support for institutions like Ara Ake sends a concerning signal to the regions and industries expected to deliver that transition.”

Chaudhari said the chamber would have preferred to see Ara Ake continue to operate, even if it were under a reduced funding model instead of a complete withdrawal of support.

News of the decision to stop funding Ara Ake came less than a month after it was announced Sophie Braggins had been officially appointed as boss of the centre after serving as its interim chief executive since the start of the year.

The role had been vacant since July 2025 following the sudden departure of the organisation’s inaugural leader Cristiano Marantes.

He had led Ara Ake since it was launched in 2020 by the then-Labour Government and at the time of his exit he was responsible for 12 staff and was paid an annual salary of between $350,000 and $359,999.

The organisation received an initial $27m in start-up funding as an investment in helping the country transition from its reliance on oil and gas exploration by trialling new energy technology.

In 2023, it received a further $70m in funding, over a 10-year period, by the Ministry of Business, Innovation and Employment.

After Marantes left, Paul Goodeve, an Ara Ake director and the boss of Clarus, was appointed as interim chief executive while a recruitment process got under way.

Goodeve was then replaced by Braggins in the temporary position in January.

Former New Plymouth MP Jonathan Young had been part of the Ara Ake team since June 2021, working in the role of head of industry and government engagement.

Ara Ake’s board was chaired by Elana Trout and included directors Paul Goodeve, Brian Ropitini, Ken Sutherland and Melissa Clark-Reynolds.

Launched in July 2020 by former Prime Minister Jacinda Ardern and former Energy Minister Megan Woods, Ara Ake was first mooted in May 2019 at the Just Transition Summit, held in New Plymouth.

Its aim was to lead the development of new clean energy technologies and work with businesses to commercialise projects and create employment.

Ardern called the launch “momentous” and said Taranaki was at the “forefront” of the country's future.