the sustainability challenge presented to new zealand indigenous research conference (july 2015)

1

The Sustainability Challenge He Manawa Whenua

A Maori community-led Sustainable Development Case Study Indigenous research innovation, Well-being and Inspiration

July 1st, 2015Claudelands, Hamilton

Indigenous research Innovation, Well-being and Inspiration

2'Indigenous research Innovation, Well-being and Inspiration'

3

Where we are

2

2 Omaio Reserve• Land-based aquaculture

3

• Omaio Straight• High-value Kiwifruit development1

1 Omaio Marae• Environmental Enhancement Program• Community Renewable Energy

4

Haparapara River• Irrigation

• Omaio Catchment study

'Indigenous research Innovation, Well-being and Inspiration'

* Must have sturdy footwear and a warm jacket.

4

WHO WE ARE?

- Our beginnings- Guiding philosophies and objectives- Macro-economic analysis- Noxious weed-control (Environmental Enhancement Fund)


5

Our Guiding Principles Ko wai tatou? (Who we are?)

• We are a not for profit whanau and hapu community organization committed to the principles of Kaitiakitanga (guardianship and sustainability) over our lands and foreshore particularly as this may relate to development of climate change responses.

• We pride ourselves on taking a real can-do approach to everything we do and towards showing the necessary leadership to making things happen.

He aha te kaupapa? (what is our Mission?)

• To raise awareness among our whanau, hapu and Iwi around the risks and threats facing our taonga (treasures) and actively and practically take steps to safeguard and protect our treasures for our future generations.

• We will actively seek out, adopt and utilize the best practices, technologies and innovations and, strategic partnerships and alliances available anywhere in the world towards achieving our objectives. And especially those lessons learned by other indigenous people.

• Leadership remains with our marae

• Implemented by our whanau (with strategic Partners

• Not for Profit• Be an active voice for our interests

with Government and other interest groups

• Have no debt


“Ko te tumanako, ko te whenua me to tatou awa, me nga moana, te waiu mo nga uri i whakatipuranga”

6

THE ECONOMICS ARE COMPELLING

- The economic and social cost for our whanau, marae and Iwi of doing nothing


7

Te Whanau a Apanui Economics


Berl 2010

8

Te Whanau a Apanui Job Creation


Berl 2010

9

NOXIOUS WEED CONTROL

• Supported by the Bay of Plenty Regional Council’s Environmental Enhancement Fund


12

BUSINESS CASES

- Land-based Aquaculture- Renewable energy

- Solar- Biomass- Micro hydro

- Energy conservation- Greenhouse grown food- Kiwifruit land development- Water infrastructure to enable high value land development- Project manager


13

Community-owned Land-based Aquaculture business-case and analysis• Partnered with Ngati Porou Seafood's

Group as being keenly interested in the (MPI) project

Financials

• Analysis determined that Salmon and kingfish were the two most viable species

• At 1,000 tonnes of production per species.

Salmon: Investment $14.58 mNPV

$0.169 m IRR

14.2%Payback 6.42

yearsKingfish: Investment $16.28 m

NPV $1.69 m

IRR 15.8%

Payback 5.99 yearsPartner: Ngati Porou Seafood's Group


14

Detailed business-case


15

Why Salmon first?


16

Omaio Community-owned Renewable Energy Business-caseUniversity of Canterbury Business-case and AnalysisNovember 2014

Technologies Investigated• Solar buildings (farm);• Wind farm;• Biofuel, and; and• Micro-hydro.

Partner: University of Canterbury


17

University Engineer Challenge


18

Solar Energy Business-caseBrief project description

• Modeled around Omaio School and/or Marae

• A 9kW Solar PV system • The system will be reliable and last

for a long duration within the community

• The design is a grid-tied system and will use the main school building as pre-existing infrastructure to mount the Solar PV panels

Financials

• Investment $28,500• Payback 7.43

years



19

Micro hydro Business-case

Brief project description

• A micro-hydro generation scheme for two hapu of Te Whanau a Apanui was designed

• Rerepa Stream and Waiorore Streams were visited and flow rates calculated

• Two systems were designed based on calculated flow rates and heads.

Financials

• Investment $52,831 • Payback 6 years



20

Biomass Energy Business-case


• The biomass system is a gasification system taking wood chips as fuel

• The wood chips will come from pulp logs in nearby commercial forests and chipped and stored on site

• A 10 kW grid-tied biomass generation system

• Thermal energy is able to be captured from an exhaust heat exchanger to heat water to distribute around two glasshouses to keep them at 24 ᵒC.

Financials

• Investment $87,100• Payback 18.6

years

Partner: University of Canterbury'Indigenous research Innovation, Well-being and Inspiration'

21

Community-owned Greenhouse business-caseBrief project description

• Powered by heat energy from a 10 kW grid-tied biomass generation system burning wood chips from pulp logs in nearby commercial forests.

• Modular design.• This provides the community with

fresh fruit and vegetables year round, and opportunity for export.

• Greenhouse will use Boiler, CO2, and artificial lighting technologies

Financials

• Investment cost >$NZ5.6 million• 2 hectare minimum (modular)• Payback period – 4.2 years

Partners: University of Canterbury and Wageningen UR (The Netherlands)


22

Omaio Community household Energy Audits and business-case completed• 18 households and 3 marae

audited• Logic dictates that energy

conservation principles should be applied first, followed by focusing on ways to meet the remaining energy requirements more efficiently; • E.g. heat pumps or;• Solar Hot Water heating.


Energy Conservation – the logical starting point

23

Most Productive Soils in New ZealandBrief project description

• 150 hectares of highly productive soils at Omaio currently growing maize;

• Perfectly suited to growing Kiwifruit;

• >$NZ30 million per annum after year Four (4); and

• Access to consistent high quality water is the primary barrier to realizing this potential for the Omaio Community.

• 2nd stop today

By Ray Sharp


Geographic Information System MappingOmaio Community

Source: Mapping done by Bay of Plenty Regional Council.

24

Omaio Kiwifruit Land-irrigation Business-case


• The Irrigation system will involve establishing an extraction\pump station close to the Haparapara River

• From which water will be pumped through a rising main to a hillside reservoir and from there gravity feeding various orchards over a 7km gravity pipeline

• Engineering is relatively straight forward

• Final stop today.

Financials

• Estimated capital cost $NZ3.3 to $NZ5 million


25

GOVERNANCE AND LEADERSHIP

- Legal structure- Management


26

Legal Structure


Charitable Trust

$ Charitable distributions

GP Company

$

Māori Landowner(s)

Māori Landowner(s)

Māori Landowner(s)

Leases

Trustee Company

Te Whānau-a-Nuku

Te Whānau-a-Toihau

Other hapu (marae)

Directors / Shareholders

$

Land-based AquacultureRenewable Energy Kiwifruit development

27

Project ManagerBrief project description

• To date it has cost us almost $900,000

• Bay of Plenty Regional Council have been a valued-partner

• We have done all the detailed economic and business-case development

• We have formed very strong strategic partnerships in New Zealand and around the world

Financials

• Investment $350,000*• Payback

Immediate

Partner: Bay of Plenty Regional Council?

* Over three (3) years


28

Cost-sharing Contributions (estimates)2009 to 2015


Bay of Plenty Regional Council Our marae (estimated actual cost)

Description Amount Description Amount

Environment Enhancement Fund $20,000 Land-based aquaculture business case $200,000

Land mapping $10,000* Renewable energy business case $70,000

Student Engineer Costs $7,000 Household energy audits $20,000

Making Good Decisions $2,500 Economic modeling (BERL) $50,000

Commercial and Taxation advice $150,000

Glasshouse business case $50,000

Kiwifruit business-case (irrigation) $100,000

Labour, organization & administration* $200,000

Total: $39,500 (4.5%)

Total: $840,000(95.5%)

* in-kind contributions.

29

Project SummaryNo Project description Partner Business

case (Y/N)

Capital required

Payback Period (Years)

1. Project Manager Central, Regional and local government Yes $NZ350,000* Immediate

2. Household Energy Audits Eastern Bay of Plenty Energy Trust, EECA, EWB Yes $NZ100,000 1

3. Biofuel Greenhouse University of Canterbury** Yes $NZ5.6 million 4.2

4. Micro-hydro University of Canterbury Yes $NZ52,831 6

5. Land-based Aquaculture Ngati Porou Seafood's Group Yes $14.6 million 6.4

6. Solar Energy University of Canterbury Yes $NZ28,500 7.4

7. Biofuel Energy University of Canterbury Yes $NZ87,100 18.6

8. Kiwifruit land development Ray Sharp Yes $NZ30 million*** 4-5

9. Land Irrigation Ray Sharp Yes $3.3 million 1-2

Total:


* Over three years. ** Advice from Wageningen UR on heating sufficiency from biofuel energy. *** Annual revenue after year 4.

30

We have the best strategic Partners and Advisors (in the world)

• Bay of Plenty Regional Council• Opotiki District Council• Our Runanga and Maori Land blocks• BERL (economics)• University of Canterbury (Engineering)• EECA, Eastern Bay of Plenty Energy Trust, Engineers Without Borders• Wageningen UR (Food innovation and Glasshouse technology)• Ray Sharp (kiwifruit)• Ngati Porou Seafood's (aquaculture)• Chapman Tripp (Legal and Commercial)


31

Regional Council with us at the marae


32

Important next step – business cases into regional development strategy

Key themes

• Natural resources will be a significant determinant of pace of growth –access and sustainability will be key

• Māori will play a key future role as asset holders and investors, based on land aggregation and productivity improvements, and higher skills

Priority sectors

• Horticulture and related processing: kiwifruit conversion; avocado export growth, Manuka honey

• Aquaculture: proposed Opotiki mussels and harbour development; commercial trout farming


33

Our community International Partnering StrategyUniversities and Technology Institutes

• Across New Zealand• Across United Kingdom and

Europe

Community Ambassadors

• Ms. Ana Ngamoki to Japan

Indigenous Communities

• International Indigenous Energy Summit

• T’Souke Solar Energy Community on Vancouver Island in British Columbia (Canada)

• Practically role modeling community-led development


* We acknowledge Chief Gordon Planes and the T’Sou-ke First Nations people for sharing with us their experiences..

• T’Souke Community Solar energy video here.

34

Meeting the Sustainability challenge

• Led by our whanau and community• The economic and social cost of doing nothing is significant

for our whanau, marae communities and the region• We have mapped out a clear path forward and done the

necessary analysis and formed durable technical and commercial partnerships

• Best economic, commercial, research and science from New Zealand and the world

• Sharing our information and experiences with other marae, Iwi and indigenous people


the sustainability challenge presented to new zealand indigenous research conference (july 2015)

Leadership & Management