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Coal Reserves Built Up In Fear Of Another Dry Winter
- Genesis Energy rebuilds stockpile to 500,000 tonnes
- Has another 500,000 ordered, and options for 200,000 tonnes extra if needs be
- Coal needed for Huntly furnaces to deliver back-up electricity supplies
- Taranaki gas find in commecial volumes
Genesis Energy is ready to burn a million tonnes or more of coal to provide back-up electricity supplies if it is a dry winter.
Anxious to avoid a repeat of last year's power crisis, when shortages loomed because of low hydro lakes, dwindling gas supplies, and poor wind generation, the company has built up its coal reserves.
"We are responding to concerns New Zealand may experience another renewable generation shortfall this winter as the national gas supply remains tight, hydro lake levels have fallen below historic mean for this time of year, and we know the wind can drop out at any stage," Genesis chief executive Malcolm Johns said.
He said the company had already replenished its Huntly station stockpile to 500,000 tonnes, had a similar amount on order for delivery up to September, and had options for a further 200,000 tonnes if needed.
Johns said the coal should be enough to cover Genesis's needs, customers who have signed up for secure supplies, and any extra demand nationally, assuming no major disruptions this winter.
"Whether the extra coal is needed depends entirely on whether rain tops up the hydro lakes. We could be left holding the costs - it's like trying to land a 747 on an aircraft carrier without a clear view out of the cockpit."
The coal would be used in the coal and gas fired Rankine units, which are fired up when power supplies are under pressure.
Generators have a plan
Last week, Genesis and the three other big power generators - Contact, Meridian, and Mercury - agreed to look at co-operating on ways to extend the life of the big Huntly units to provide back-up generation in dry years.
Meanwhile, leading local gas supplier Greymouth Petroleum has confirmed that the significant gas and oil condensate found in its Turangi field late last year is in commercial volumes, and should boost longer term supplies
The company said it planned more drilling in the field, which has close to a third of the country's reserves.
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