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We have provided the following information for the World Coal Institute (WCI) website as part of an initiative to create a section on Country Profiles. There are 13,000 visits monthly and the site is an important source of information on the global coal industry. We update the information regularly as new data becomes available - last updated February 2009.
Country Background - New Zealand
This section provides key energy facts, giving a general background to the national energy scene.
Primary energy consumption - breakdown of fuels (%)
Primary energy consumption by fuel for 2007 (2008 figures not yet available) was:
- Oil - 37.7%
- Gas - 22.6%
- Coal - 9.2%
- Hydro - 11.3%
- Geothermal - 12.5%
- Other renewables* - 6.7%
- Waste heat - 0.1%
*wind, biogas, wood, and solar water heating
Coal production & consumption (million metric tonnes) for the Year until September 2008
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Coal Production & Consumption
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· Coal Production - 5.13 Mt
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· Coal Consumption - 3.12Mt
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Coal imports & Exports
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· Coal Imports - 0.55Mt
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· Coal Exports - 2.56Mt*
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*Coal Exports from New Zealand are primarily low ash and low sulphur bituminous coal for steel making.
Coal production for the year until September 2008 is close to the record levels of 2003 to 2006. Production is expected to increase again in 2009 with the Pike River coal mine beginning production. From mid-2009, Pike River hopes to produce approximately one million tonnes a year for 18 years. Advance sales for export have already been made.
Production and consumption data source: NZ Energy Quarterly (September Quarter 2008); http://www.med.govt.nz/upload/63972/NZEQ_Sep08.pdf
Coal Resources
New Zealand has extensive coal resources, mainly in the Waikato and Taranaki regions of the North Island, and the West Coast, Otago and Southland regions of the South Island.
Total in situ coal resources are estimated at around 15 billion tonnes of which, approximately nine billion tonnes is judged to be economically recoverable. Recoverable ignite deposits are estimated at over six billion tonnes. Sub-bituminous and bituminous in-ground resources are about 3.5 billion tonnes, although there is some uncertainty how much of this is recoverable.
Breakdown of economically recoverable reserves:
- 80% South Island lignite
- 15% sub- bituminous
- 5% bituminous coal
Coal Production & Consumption
A more detailed section looking at coal production and consumption.
Coal Production
For the year until September 2008, New Zealand produced 5.13Mt of coal, an 11.5% increase over the previous year.
Underground / Opencast Mining Split (%)
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Underground
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17%
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Opencast
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83%
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New Zealand has 26 operating coal mines - four underground and 22 opencast mines. Over 60% of national production was from two large opencast operations, at Rotowaro and Stockton, and a further 16% from New Zealand's two largest underground mines, Huntly East in the Waikato and Spring Creek at Greymouth.
Solid Energy is New Zealand's largest coal producer, producing over 80% of New Zealand's total coal production.
Coal Consumption
New Zealand has only one coal-fired power station, which is the 1000 MW Huntly Power Station in the North Island. The use of this had been scaled back in 2007 in favour of gas, however, the plant was pushed into use again by a particularly dry winter in 2008 impacting on hydroelectricity production. Other major coal consumers are dairy processor Fonterra and New Zealand Steel.
Coal Consumption by Sector 2007
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Sector
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% of Domestic Coal consumption
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Electricity generation
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39.7%
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Other transformation
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26.1%
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Industry
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25.3%
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Commercial sector
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5.8%
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Agriculture
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2.2%
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Residential
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0.8%
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National Transport
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0.1%
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Data Source: Ministry of Economic Development, Table C.2 Table of Coal Consumption by Sector: http://www.med.govt.nz/upload/59482/05_Coal.pdf
Electricity Generation
For the year ended September 2008, New Zealand's net electricity generation was 42,705 GWh. 51.4% of New Zealand's electricity is produced from hydro with 10.1% supplied by coal.
Breakdown of New Zealand electricity production:
- Hydro 51.4%
- Gas 25.6%
- Geothermal 8.4%
- Coal 10.1%
- Wind 2.4%
- Others 2.1% (oil, waste heat, biogas and wood)
Data source: NZ Energy Quarterly (September Quarter 2008); http://www.med.govt.nz/upload/63972/NZEQ_Sep08.pdf
Projected rates of growth in electricity generation
In the last 10 years, electricity generation has grown by 19%. The New Zealand Ministry of Economic Development estimates that electricity generation will reach 47,800 GWh by 2015. Geothermal energy is expected to increase significantly in the next decade with a number of large-scale projects announced, including Mighty River Rower's 132 MW Nga Awa Purua plant and Contact Energy's 220 MW Te Mihi project. Coal use increased significantly over the past year reflecting the problem of low hydro-lake levels over the dry 2008 winter (coal use increase by 75% over the 2008 September quarter compared to the same quarter in 2007).
World ranking
Low
Environment & Clean Coal Technologies
A general introduction to environmental issues surrounding energy consumption in
New Zealand
.
Specific national environmental challenges
Climate change, particularly a CO2 tax possible on thermal power generation only. Air quality issues especially for coal use in towns with fine particulate pollution from household wood burners. Water quality particularly from old mine workings.
National regulations - emission limits, air quality standards
New National Environmental Standards on Air Quality are in the process of implementation. These have tightened restrictions on fine particulate emissions.
Government policies/actions to support clean coal technologies
A draft New Zealand Energy Strategy, a draft National Energy Efficiency and Conservation Strategy and a draft climate change policy have been released. Government energy objectives are reliability and resilience, environmental responsibility and fair and efficient energy prices for current and future generations in the transition to a low carbon energy sector.
Names of major research programmes into CCTs
Hydrogen energy for the future of New Zealand - including a major objective on production of hydrogen from carbon derived fuels.
A significant three-year research programme into CCS involving CRL Energy and GNS Science began in 2008.
International Activities
Involvement with relevant environmental agreements/organisations
Signatory to
Kyoto Protocol
, membership IPHE, IEA-CCC, IEA-GHG R&D Programme and Coal21, CO2CRC (
Australia
). See the following links:
Challenges Facing Coal
Details on specific challenges facing the coal industry and energy sector more widely
Depletion of major gas reserves is highlighting the importance of coal resources. High mining costs may mean increased imports in the near future until there is large scale use of lignite resource. Political concern over greenhouse gases means there is a possibility of specific regulations against new coal fired power stations.
Government Information
Name of relevant ministers
The Minister of Energy and Resources under the National Government is the Hon. Gerry Brownlee.
The Associate Minister of Energy and Resources is the Hon. Pansy Wong.
National Association
Short summary of national association
The Coal Association of New Zealand (Inc.) represents coal producers and the wide range of coal users in
New Zealand
. The Coal Association of New Zealand represents the interests of over 95% of
New Zealand
's coal producers and industry users. In total, 16 coal mining enterprises in
New Zealand
are producing over 5 million tonnes of coal annually from 26 operating mines.
The Association liaises with the Government and the community, and promotes government and industry research investment to strengthen the industry's competitiveness and environmental acceptability. Our main research provider is CRL Energy Ltd.
New Zealand
has reserves of coal that can provide affordable, environmentally sustainable and secure energy for hundreds of years. Energy is important to the
New Zealand
economy and a key policy objective must be to deliver the lowest cost energy possible. The need to maintain competitiveness and developing technologies demand that these coal reserves be part of
New Zealand
's future energy portfolio.
The Coal Association works actively to ensure coal continues to contribute to
New Zealand
's prosperity. Our vision and scope of activities focuses largely on the development and deployment of new technologies. Clean coal and carbon and capture technologies provide the main pathway to addressing environmental issues from coal utilization. The Coal Association is investing in research relevant to their application to
New Zealand
coals, principally through an industry government research and investment partnership established in 2006. Complementing this partnership is membership of key R&D organisations such as the Australian based CO2CRC, the IEA CCC and the IEA GHG R&D Program. These links and collaborations allow the Coal Association to be involved in international projects and informed on advances in coal-based energy production around the world.
In addition, the Coal Association supports the $6 million Foundation for Research, Science and Technology research programme "Hydrogen Energy for the Future of New Zealand" as a first step in
New Zealand
's possible transition towards a hydrogen energy economy. The Association has invested in related areas of advanced technological and environmental issues, including the development of a Hydrogen Roadmap for the coal industry and technologies. It also a member of the Carbon Capture and Storage (CCS) Research Steering Group - a joint Government/industry initiative led by the Foundation for Research, Science and Technology, which supports a three-year research programme (started in 2008) to investigate New Zealand's carbon capture and storage potential.
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