A $2.9M government investment has been approved for the expansion of Cromwell’s Scapegrace Distillery to meet growing national and international demand and consolidate the company’s three New Zealand productions sites into one.

The funding was announced by regional development minister Kiri Allan this week.

Government is continuing to invest in projects in Central Otago as part of an ongoing strategy to diversify its economy beyond tourism, she said.

“The further development of the food and beverage industry in Central Otago will add to the region’s international brand reputation.”

Kiri said expansion of the distillery will create 218 jobs during construction and 24 permanent roles once operational.

The business will aim to reduce emissions through deploying an electrode boiler, an energy efficient way of creating process heat without the use of fossil fuels, she added.

The multi-million dollar convertible loan for Scapegrace is from the Regional Strategic Partnership Fund, which aims to grow regional economies by working with them to develop region specific projects.

Read more: Scapegrace to build $25m distillery on shores of Lake Dunstan  

The regional funding announced this week includes a $4.5M underwrite to support Silverlight Studios’ project to establish a film studio in Wānaka; and $3M towards Gore’s James Cumming Community Centre and Library.