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Education Minister Chris Hipkins and Finance Minister Grant Robertson confirmed the approval for the new building, known as Science North.
It will replace the university’s former earthquake-damaged science buildings.
Science North will be a new learning and research facility situated at the northern end of the campus and is due to be completed in May 2023.
Acting vice-chancellor Professor Bruce McKenzie said it will feature "state-of-the-art teaching, research and collaboration spaces complemented by multi-use adjustable workstations and social zones, all set within a biodiverse park-like environment".
"Lincoln University has always been a chief driver of innovation in the land-based sector, particularly in the food and fibre industries, and our new science facilities will position us to take an even more prominent role in developing solutions for the world’s most pressing environmental challenges.
"Our new science facilities will deliver a safe, futureproof, inspirational environment where our students, graduates and researchers can contribute to a globally-competitive agri-tech industry.
"If there was ever a time for the tertiary education sector to step up to equip future generations with the skills and knowledge to shape a new future, that time is now.”
Leighs Construction is the university’s construction partner for both Science North and Science South.
Science North and Science South are part of a wider campus development programme for Lincoln University that has already seen the launch of a vibrant and bustling new student hub, comprising a café, mini-theatre, recreation area, collaboration zones and a garden courtyard.
Further campus projects, including an extensive upgrade of the Sport and Recreation Centre and an overarching visionary landscaping masterplan, are in various stages of development.