"Farmers know better than most about the effects of climate change, and many are innovating so they can drive down on-farm emissions. They need technology like this to help them get there though," he added.
"Sustainable agribusiness and transitioning to a low-emissions economy is a major focus for the coalition government. It's why we established the $40 million a year SFFF fund last year, to invest in projects that deliver economic, environmental and social benefits for all Kiwis."
Aquaculture, he said, was a growth industry for New Zealand, and has the potential to play a more significant role in the economy. It was currently worth $600m a year, and employed more than 3000 people.
"The Cawthron project could lay the foundations for a new high-value industry, along with the jobs that go with it. There is also export potential and on-farm economic benefits, including price premiums for milk and meat," Mr O'Connor said.
"We want to be the most productive, sustainable country in the world. Projects like this will contribute to New Zealand's reputation in sustainable and innovative aquaculture and agriculture."