The government is allocating $550,000 to clean up hazardous waste.
Environment Minister Amy Adams says the funding has been awarded to Transpacific Technical Services to collect and dispose of hazardous material found primarily in old electrical equipment.
The material, known as polychlorinated biphenyls (PCBs), was previously used in products such as electrical transformers, ballasts and heat transfer capacitors.
"The potential harm of PCBs was unknown when they were initially used in products," Ms Adams says.
"Since 2004 the manufacture, import or use of PCBs has been prohibited in New Zealand. However, there is legacy waste that still needs to be collected and disposed of in a safe way."
Ms Adams says it can't be buried.
The company will collect 12 tonnes of PCBs over the next two years and will launch a publicity campaign advertising the free collection and disposal service.