1. RDL Priorities for New and Renewable Energy Technologies in New Zealand. David F.S. Natusch EGNRET 25 Economy Report, Yang Ming Shan, 31 Oct -2 November, 2005 Priorities for NRET in New Zealand

2. RDL Coverage Current Energy Situation Future Outlook The Way Ahead The Place of NRET in New Zealand The Role of Government Key Points Priorities for NRET in New Zealand

3. RDL Priorities for NRET in New Zealand Current Energy Situation Primary Energy Supply, 768 PJ Domestic Energy Consumption, 508 PJ Electricity Supplied, 41,500 GWh (5,800 MW) Installed Capacity, 6,300 MW Petroleum, 200 PJ Natural Gas, 150 PJ (- 22% this year!) Electricity, 60 PJ, Petrochemicals, 47 PJ Industrial, Commercial, Residential, 43 PJ, Coal, 5 million tonnes/year, 110 PJ, Geothermal, 520 MW Wind, 350 MW

4. RDL Priorities for NRET in New Zealand Electricity Generation in New Zealand Hydroelectricity60% Geothermal 9% Wind 6% Natural Gas13% Coal12% Otherv. small Currently about 75% from New and Renewables But, This Distribution is Changing Rapidly

5. RDL Priorities for NRET in New Zealand Maui Gas Field is near Depletion Replacement Options (200 PJ) Petroleum Products, Natural Gas, LNG, Coal/Lignite, Hydro, Geothermal, Wind, Biofuels - Ethanol from Agricultural Biomass, - Methanol and Ethanol from Forest Biomass, - Fats and Oils, - Biogas, Hydrogen/Fuel Cells, Combination of the Above. All have associated Shortcomings

6. RDL Priorities for NRET in New Zealand The Way Ahead Options LNG, Lignite and Wind are real options, Gas exploration encouragement, Impediments Major Nimby & Banana constraints, Lack of coordinated planning, “The market will Decide”, Government will Regulate. NRET likely to Increase

7. RDL Priorities for NRET in New Zealand The Future Role of NRET Commercially Proven in New Zealand Hydro Geothermal Wind Fastest Growing, 2 new wind farms under approval (435 MW). Biogas Small scale, Sewage and Landfill based. All future development by the Private Sector

8. RDL Priorities for NRET in New Zealand The Future Role of NRET Near Commercially Proven in New Zealand Lignite via Gasification, Very Large (200-300 years supply) Biodiesel Technically Proven and Field Trialed, Rapeseed Oil and Animal Tallow Esters. All future development by the Private Sector

9. RDL Priorities for NRET in New Zealand The Future Role of NRET Technically, but not yet Commercially, Proven Agricultural Biomass Sugar Beet and Maize, - Ethanol/Gasoline Blends (E 2-5 and E 20), - Ethanol (E 90). Forest Biomass Fermentation of Wood (Pinus Radiata, Eucalyptus), - Ethanol/Gasoline Blends (E 2-5 and E 20), - Ethanol (E 90), - Biogas. Wood Gasification (Pinus Radiata, Eucalyptus), - Methanol/Gasoline Blends (M 2-3, M 15), - Methanol (M 85),

10. RDL Priorities for NRET in New Zealand The Future Role of NRET Research and Development Stage Hydrogen Coal, Biomass Water Fuel Cells Mainly System Integration Limited Government and Private Sector Research

11. RDL Priorities for NRET in New Zealand The Future Role of NRET Work on Hydrogen and Fuel Cells Hydrogen Research Projects7 Demonstration Projects3 Fuel Cells Research Projects3 Demonstration Projects1 Number of Small R & D Projects

12. RDL Priorities for NRET in New Zealand The Future Role of NRET Research on Hydrogen and Fuel Cells in New Zealand Hydrogen Production from New Zealand Coals, Fuel Cell System Integration, Grid Intergrative CHP Fuel Cell (1 kW), Wind based RAPS Alkaline Fuel Cell (2 kW), Both Government and Private Sector Research

13. RDL Priorities for NRET in New Zealand The Future Role of NRET Demonstrations of Hydrogen and Fuel Cells Hydrogen RAPS, Rural Community (2 kW), Methanol Fuel Cell, Captive Power (2 kW), Associated Carbon Dioxide Sequestration, Water Electrolysis from Renewable Energy, Photo Electrochemical Hydrogen Production, Hydrogen Storage in Light Metal Hydrides, Hydrogen Storage in “sponge” materials, Thermo Chemical Hydrogen Production. Both Government and Private Sector Demonstrations

14. RDL Priorities for NRET in New Zealand The Role of Government Promote Investment in New Technology Establish Regulations, Standards & Codes, Establish the Institutional Infrastructure, Create an Environment for Private Investment, Establish long term Tax & Excise Duty Advantages, Promote Public Awareness, Engage with Industry in Promotion and Marketing, Maintain a Long Term Commitment. Government does not take a Leading Role

15. RDL Priorities for NRET in New Zealand Key Points Already a high level of Renewable Energy, Wind Energy is growing Rapidly, Lignite Gasification potential very large, Biomass options Technically proven, Limited additional NRET options, Private Sector has Choice of future Energy, Government Role largely Regulatory, Limited Current R & D in NRET.

16. RDL Priorities for NRET in New Zealand A Final Word Fischer Tropsch GTL/CTL Technology is Coming of Age! Economic at Current Oil Prices, Premium Quality Products, Brings Stranded Gas to Market - 2,500 tcf Worldwide, 370 tcf in APEC Well suited to Coal/Lignite Feedstock Utilizes Existing Fuel Supply Infrastructure, Environmentally Friendly, Minimal (zero) Social Disruption Gasoline and Diesel may well live on for a while!