Upskilling for Productivity
Southern Institute of Technology
July 2009
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Overview of Solid Energy
Energy Market
Lignite conversion project
Productivity/transformation
Outline
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Solid EnergyA Diversified Energy Company
Rotowaro Opencast
1.9 mtpa 06/07
Thermal Coal
Customers: Genesis, NZ Steel, Small industrial
Stockton Opencast
2.1 mtpa 06/07
Coking coal
Customers: Export, Holcim Cement
Spring Creek Underground (JV)
0.8 mtpa 07/08
Semi coking / Thermal coal
Customers: Export, Industrial
Huntly East Underground
0.43 mtpa 07/08
Thermal coal (used for steel making)
Customers: NZ Steel, Small industrial
Lyttelton Port of Christchurch Supply Chain Partner
Export 2.0 mtpa 07/08
Switch
Solar, Pellet hardware, integrated energy solutions
Customers: Industrial, Household
Nature’s Flame
20ktpa 07/08
Biomass
Customers: Industrial, Household
CSG
Project development
Newvale Opencast
0.2 mtpa 07/08Lignite coal Customers: Industrial,
Household
Biodiesel New Zealand
1mlpa 07/08
Bio Diesel
Customers: Small commercial
OutlineNZ Energy Market- Over 50% is imported …
Coal, 13%
Wind, 2%
Gas, 18%
Hydro, 57%
Co Gen, 3%Geo, 7%
Quick Facts75% of energy consumption is non-electricity
56% of energy consumed is imported (oil and coal)
25% of energy consumed is renewable
Coal, 7%
Oil, 52%
Gas, 8%
Renewables, 8%
Electricity, 25%
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2,078 Mt
380 Mt
983 Mt
9,392 Mt
2,722 Mt
… NZ has significant indigenous energy resources…
NZ globally significant coal resources
2nd highest resource per capita
15Bt (~200,000PJ) ~50 Maui gas fields
Small middle eastern oil state
80% in Southland and Otago- But lower rank
… including Coal…
Renewable – Hydro, wind, geothermal
Fossil fuel – Natural gas
…Conversion technology needed to bring energy to market…
Solid Energy Lignite Project
Resource access- Reviewed all key lignite
resources
- Selected Mataura/Croydon as the key area of interest
- Secured land and resource primarily through acquisition (1.4 Bt lignite secured)
Resource proving - Drilling exploration
programmes advanced resource knowledge
…concept studies highlighted transport fuels, fertilizer and electricity most prospective…
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Focused on Transport Fuel Production
Feed stock- Up to 15Mtpa of lignite
Plant- Sized to displace imported refined
diesel 30 – 40,000bbl/day (1.5-2BLpa)- 75% Diesel, 25% Naptha( ~50% of NZ
diesel consumption)- High quality product – zero sulphur,
high cetane
Carbon Management- Portfolio approach to carbon
management- Carbon Capture & Storage (CCS)
assessments- Other offsets available
Distribution- Pipe line to Port
Capital - ~NZ$10B capital cost
Carbon Management Planning
Biomass and Municipal waste other renewable feedstock
Renewable power import
Optimise CTL technology and design
CTL plant
Bio-sequestration
Geological Sequestration (CCS)
Global off-sets/credits
Other direct off-set opportunities
Project still a great ‘option’ for New Zealand to progress
Comprehensive investigations ongoing
Next 18 months- Continue exploration on lignite resources
- Complete conversion technology studies
- Further investigate carbon management solutions
- Complete ‘pre-feasibility’ study
Next Steps
Access to skilled people is a development constraint
Solid Energy has experienced issues in current business- Lack of NZ based skills
- Internationally competitive market (Skill shortage)
- NZ learning programmes
Effectively bringing 2 significant projects into the region- Mining (up to 15Mt)
Geologists, hydro-geologist, hydrologists, mining engineers, environmental scientists, mine operators etc.
- Plant operations (30 – 40kbbl/day)Chemical engineers, process engineers, electrical engineers, petroleum engineers,
research scientists, all trades, construction etc
Upskilling for productivity
This is a new industry, not new project
Taranaki petroleum experience
Extensive skills programmes required to support development of this industry- Tailored tertiary programmes
- Post graduate study/research opportunities
- Training and certification of staff and contractors
- Creation of research centres
Note: Limited requirement for upskilling prior to commitment to progressing into feasibility
Upskilling for productivity