Media Release
A $1.75million New Zealand commitment to Carbon Dioxide emmissions research
21 June 2004
Coal producer, Solid Energy New Zealand Ltd, electricity generator, Genesis Energy Limited and Geological and Nuclear Sciences Limited are committing A$1.75 million to a joint Australian and New Zealand research initiative to develop advanced technologies and systems for the capture and storage of carbon dioxide produced from burning fossil fuels.
Solid Energy, Geological and Nuclear Sciences (GNS) and Genesis Energy have formed a New Zealand consortium to participate in a seven-year A$11 million research programme, which is run under the Australian Cooperative Research Centre (CRC) programme. Under the CRC programme, the Australian Government matches research funding dollar for dollar.
The New Zealand consortium will contribute A$250,000 per annum (Solid Energy A$150,000, Genesis A$50,000 and GNS A$50,000) to the Cooperative Research Centre for Greenhouse Gas Technologies which is also supported by Shell, BP, ChevronTexaco, Woodside, Rio Tinto and BHP Billiton. Research will be carried out in universities and research organisations in Australia and New Zealand. Researchers from leading universities and research organisations in Canada, Japan, the Netherlands, the United Kingdom and the United States will also participate through parallel programmes.
Solid Energy Chief Executive Officer, Dr Don Elder, comments: "Coal is New Zealand's best option for secure and affordable energy supply in the future. Technologies that reduce emissions of sulphur dioxide, nitrous oxides and particulates to near zero are already available and are used in New Zealand by industry and for electricity generation. Although with a carbon tax further coal-based energy production and electricity generation may still be economic, the primary effect of the tax will simply be to make energy and electricity significantly more expensive. Capture and storage of CO2 offers the opportunity to avoid the carbon tax and directly reduce greenhouse gas emissions to the atmosphere. That is why we believe it is important for Solid Energy to play a leading role in this international research."
Genesis Energy Chief Executive, Murray Jackson said that his company is committed to the development of power generation plant which will reduce the level of CO2 emissions. The company believes that by cooperating with the larger Australian initiative, New Zealand will gain access to world leading research.
"Genesis would investigate a prototype CO2 extraction plant at Huntly in conjunction with the CO2CRC programme," he said.
GNS Chief Executive Officer, Alex Malahoff, comments: "Our aim is to put carbon dioxide from fossil fuels back where it came from - deep underground. CO2 emissions can be permanently stored in deep geological formations such as coal seams, oil and gas reservoirs and deep saline aquifers. We need to demonstrate that geological sequestration is a safe, economic and environmentally benign option for New Zealand. Working with the Australian CRC and leading researchers worldwide, we will develop cost-effective technologies to put CO2 back underground and provide an important option for mitigating climate change."
The aim of the Australian CRC for Greenhouse Gas Technologies is to carry out research into CO2 capture and storage and to develop innovative technologies and systems that will allow industry to reduce CO2 emissions in an environmentally sustainable and economically effective way and as a result maintain its competitiveness. The research programme also aims to further develop new commercial energy opportunities, such as hydrogen energy.
For further information contact:Vicki Blyth, Communications Director, Solid Energy New Zealand Ltd, Telephone 03 353 0100, Mobile 021 670 250.
Further information about the project can be found on the website co2crc.co.au Note to Media Solid Energy New Zealand Ltd and Genesis Energy are both state-owned enterprises. Solid Energy is New Zealand's leading coal company, producing around 4 million tonnes of coal a year from its seven underground and opencast mines. It is a major supplier of coal to Genesis Energy which owns seven power stations in the North Island, including Huntly Power Station, New Zealand only electricity generator which runs on coal and gas. Geological and Nuclear Sciences Limited is a Crown Research Institute and the New Zealand Government's main earth systems researcher and adviser.
