The Speight's brewery in Dunedin will shift from running its factory on coal to gas.
The brewery's owner, Lion, increased production in Dunedin when its Christchurch operation had to shut down after recent earthquakes.
However as a result, its four ageing coal boilers were pouring black smoke pouring from the chimney breaching its air pollution resource consents.
The change will be part of a $29 million redevelopment which is permanently shifting tap beer and malt extract production to the historic Speight's site in Dunedin.
Lion has announced it will install one new four-megawatt boiler running mainly on LPG from the middle on 2013.
A temporary gas boiler is also being commissioned in the next month to improve the smoke discharges.