The Proprietors of Taharoa C Block

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The Proprietors of Taharoa C Block

• Renewable Energy Developments
• FOMA Conference November 2007

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Renewable Energy Projects

• Energy Crops
• Wind Power

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Energy crops

• Business case
• Utilisation potential
• Benefits
• Taharoa C progress
• Impediments

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Business case

• Taharoa wind projects needed a use for land
  around wind turbines that is compatible with
  windpower. Could not be trees
• Lower fertility land generally but with adequate
  rainfall
• Crop had to be compatible with existing or
  imminent processing technology
• Having found the right crop it was realised that
  this was an important business opportunity in its
  own right as a feedstock for energy use

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Miscanthus

• We are looking at a BIG grass called Miscanthus
  giganteus
• Being developed in the USA, Europe and Japan as a
  biofuel feedstock
• Miscanthus a good choice as it grows on poorer
  quality land, does not need replanting each year
  and needs no fertiliser.
• Sterile so it does not spread
• Not currently present in NZ

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Miscanthus being harvested
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Utilisation potential

• Target is production of bio-ethanol for vehicle
  fuel NZ technology the ideal but overseas
  technology available too.
• Other use for direct heat in mixture with coal
  for electricity generation
• Can also be fired through smaller, local power
  generation facilities
• Potential for use in liquid BioOil production for
  electricity and biochar using Canadian technology
• Or for paper production.

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Liquid biofuels

• NZ and international focus is on biodiesel and
  ethanol
• Ethanol mostly made from maize
• Miscanthus enables cellulosic ethanol production
  so no impact on food prices.
• NZ has technology to make ethanol from hardwood -
  willow, poplar, Miscanthus. Pine is more
  difficult
• Byproducts can include lignin glue and other
  uses plus Xylitol and bio-plastics
• Byproducts worth much more than the ethanol so
  they are the key to good economics

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Direct firing

• Can be co-fired with coal.
• Used a lot for this purpose in the UK
• Also potential for direct firing in purpose built
  local power generation facilities
• This more suited to New Zealand outside the
  Waikato Region away from Huntly
• A means of providing a local power source for
  smaller / more remote communities

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Benefits

• NZ government biofuel sales obligations support
  the case for Miscanthus
• Regional development utilisation of marginal
  land
• Some employment creation in low employment areas
• Develops regional expertise that could be
  exported domestically and internationally

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Taharoa progress

• Taharoa obtained ERMA approval to introduce the
  crop into NZ on 17 Sept 2007
• Taharoa consulted with 176 Maori groups as part
  of ERMA application
• MAF Import Health Standard almost complete
• Plants in NZ under quarantine and being produced
  for crop trials in 2008
• Taharoa identifying suitable sites for growing
  this crop

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Impediments

• Sometimes slow decision-making with multiple
  ownership entities
• Conservative views that are blind to business
  opportunities
• Government inertia delaying progress
• Delays in getting financial credit for carbon
  benefits
• Set-up costs for biofuel crop establishment
• RMA impediments to development of processing
  plants

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Taharoa Wind Power Project

• Investigations commenced Oct 2004. Existing
  infrastructure. Good infrastructure
• Option of bringing power company in early
  investigated and rejected.
• Resource Consent granted 4th Sept 2006
• Subject appeal by DOC
• Power purchase alternatives well understood and
  positions prepared
• Economics challenging since fall in NZ and rise
  in steel turbine costs

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Parengarenga Incorporation

• Joint venture concept Taharoa C / Parengarenga to
  investigate wind power
• Connell Wagner met. modelling to assess the site
• Detailed measurements from 80m Jan 2007
• Indications of a high energy site
• Major cost associated with grid connection. TOP
  Energy and Transpower
• Another power company investigating near Kaitaia

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Lessons Learned

• There are opportunities for Maoridom but they
  need to be proactively pursued.
• There are no favours for Incorporations or Trusts
  from, central or local government
• Incorporations need to understand the subject
  themselves and not rely on large companies with
  another agenda, for advice.
• There are renewable energy opportunities often
  associated with land ownership

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Maori as Independent Energy Developer

• Much land agriculturally marginal so energy
  crops have potential
• Often remote from the grid so can limit national
  power generation opportunities
• In most cases very limited capital available
• Very limited experience in project economics
• Inexperience and suspicion in dealing with large
  power corporations

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Questions and discussion