June update

In a recent interview, Transpower CEO Alison Andrew made clear that higher volumes of renewable electricity generation had greater intermittency. This leaves the electricity system vulnerable to equipment faults and changing weather conditions, particularly at times of high demand.

Andrew went on to say:

"The transition to higher levels of renewables is critical but we also need other flexible generation capacity or demand response that can react quickly to support it during times of high usage.”

It is inevitable that there will be times when the wind is not blowing, the sun is not shining, and the water levels in the hydro lakes are low.

As a country, we are in a fortunate position to have low emission renewables play a large role in our energy mix. But as we look to electrify more sectors of the economy, there will be an ever-increasing demand placed upon our electricity infrastructure and generation.

We will need more energy.

When we think of energy, it is easy to think only about electricity. But much of New Zealand's energy, particularly petrol, diesel, and aviation fuel, is imported.

As we begin to see more electric vehicles and plug-in hybrid vehicles on our roads, we must be conscious that we are shifting from using imported fuels to now adding more demand for domestically produced electricity.

Greater electrification will require further generation, and an even more pressing need for reliable back-up sources of energy such as natural gas.

We need to ensure we do not see an energy gap open up by transitioning too quickly from natural gas (see page 40 of our report, Fuelling the Energy Transition which outlines over various pathways the magnitude of the energy gap that needs to be filled as natural gas demand reduces).

New Zealand's energy sector is changing, and we saw that firsthand at our recent Energy Resources Taranaki Forum. Many speakers chose to profile some of the exciting new forms of energy that are set to take a more prominent role in our energy mix in the future. These included offshore wind, methanol as a low emissions marine fuel, and biogas.

New Zealand's weather and geography means that we are best served by a broad energy mix - one that can help provide electricity at times of peak demand when renewables need a hand.

Energy Resources Taranaki Forum

On Wednesday 31 May we were proud to host the second in-person Energy Resources Taranaki Forum, in conjunction with Freeman.

The first in-person Forum in 2022 was a celebration of the upstream oil and natural gas sector which coincided with our 50^th anniversary.

This time around, the theme for the Forum was “Building blocks for a smooth transition”. Throughout the day we heard from a broad range of speakers about many new and exciting forms of energy that are being added to our energy mix. This included presentations on methanol as a low-emissions marine fuel, how biomethane could be used in the natural gas network, and how we can unlock the promise of offshore wind resources in Taranaki.

During the day we also heard from energy industry leaders about the political and regulatory commitments needed for the sector and how we can unlock investment in new and existing operations; had an insightful presentation on carbon capture and storage; and hosted the launch of the fantastic Women in Energy initiative to increase diversity across the energy sector (more on this below!).

The event and following dinner with pollster David Farrar drew strong crowds and fantastic engagement from the audience. It looks like we are in for an interesting run-up to October's election.

A big thank you to all of our members who attended, sponsored, and spoke at this great event.

Launch of Women in Energy

If you or your organisation would like to learn more about Women in Energy, please visit our website for a copy of our plans through to 2025 and beyond, or contact Sheree Long, Director, Workforce Development

Demystifying carbon capture

Across much of the developed and developing world, carbon capture is a thriving industry which allows countries to meet their emissions targets without deindustrialising.

This theme was picked up by Wood Beca's Nick Cozens at the latest Energy Resources Taranaki Forum, where he explained how carbon capture allowed countries to decouple GDP growth from emissions growth.

In late May, we had a long conversation with Newsroom's Business Editor Nikki Mandow to bring attention to how the rest of the world is using this technology, and how we think it could be applied in New Zealand.

Just as with any good idea, there is still some work to win over a few critics. But we are very encouraged by the growing number of organisations and thought leaders who are speaking out in support of this innovative solution to industrial emissions.

With organisations as diverse as Energy Resources Aotearoa, the Climate Change Commission, the New Zealand Initiative, the International Energy Agency, Ara Ake, the Aotearoa Circle, and the Intergovernmental Panel on Climate Change all supportive of the technology, it is only a matter of time before our politicians catch on.

Watch this space.

Strengthening vocational education

We were proud to partner with the Tertiary Education Commission to produce a video on how vocational education is helping upskill New Zealanders for roles in the energy sector.

The video shows how we are working with the Taranaki Regional Skills Leadership Group to help identify and support better ways of meeting future skills and workforce needs in the region.

Acting as a conduit between the education and energy sectors is a hugely important role for us as an organisation. It helps ensure that the energy sector's voice is represented in the education space, so that qualifications are aligned well with roles in the sector.

Watch the video below to learn more about our work (and see some familiar faces!).

Seabed Mining Bill defeated

The Labour Party opposed this Bill at first reading, nothing that the way it was written could have potentially meant that existing offshore oil and natural gas permits would be cancelled.

It is concerning that any Member of Parliament would be willing to threaten New Zealand's energy sector by proposing such a Bill.

As an alternative to proceeding with the Bill, the Government initiated an inquiry into seabed mining, which will be undertaken by Parliament's Environment Select Committee. We are pleased to see offshore petroleum excluded from consideration, which reflects the established nature and importance of the sector to New Zealand’s wellbeing. Submissions are due 23 June.

A carbon dividend future?

It is good to see the concept gain wider currency.

The proposal is not a new one. Dr Eric Crampton at The New Zealand Initiative has long called for New Zealand to adopt the scheme. We have been proud to be longtime supporters of the idea.

In Parliament, both ACT and the Greens are supportive of the idea of a carbon dividend too.

The main argument for a carbon dividend is that it would help families adjust to rising carbon prices in the ways that make the most sense to them. For some, that might be using the dividend to better insulate their homes, invest in more lower-cost heating, or save towards purchasing a more efficient vehicle.

It also means that the ETS can focus on what it does best - incentivising emissions reductions - and not have to be redesigned to focus on distributional issues which it is not well suited to address.

The only pitfall is that giving ETS revenue to households would mean that politicians would have less money to provide in grants to businesses.

We have long argued against the government providing businesses with green subsidies. The Emissions Trading Scheme caps New Zealand's emissions, so reducing emissions from Business X merely frees up more units for Business Y. This is known as The Waterbed Effect.

You can read more about The Waterbed Effect here.

Energy Skills Industry Talent Corner

After gaining hands-on experience through on the job training and being signed off as a qualified Operator, I had a year off work to raise our first son.

With Todd Energy’s support, I returned to work part-time as a Permit Issuer at their McKee Mangahewa Production Station. This was a great development opportunity for me, where my Operations experience gave me the hands-on knowledge and confidence to have a practical approach to identifying and managing hazards. I found the Permit Issuer role both challenging and rewarding. Interfacing with workers and the safety aspects of the role were what I enjoyed the most.

I then had a second year off work, raising our second son. While enjoying time with my family, I took time to reflect on what I wanted my career to look like and how I would achieve balance between quality time with my family and a successful career I was passionate about.

One discipline I had always found interesting across all my roles in the Energy Industry was Health and Safety. With Todd Energy’s support I studied while on maternity leave and completed my Health and Safety qualification. I am now back at work part-time as a site-based Health, Safety and Environmental Advisor. I enjoy the diversity of my role and the innovative approach to Health and Safety here at Todd. Contributing to keeping people safe at work is fulfilling and I enjoy still being site based and in the action. While working and spending time with my family I plan to continue studying part time to gain my graduate degree in Occupational Health and Safety. 

Member profile: YellowBike

As a 10-year-old farming kid in a steep, remote rural area, the “185cc yellow motor bike” provided early experience in risk management, creative problem solving, and decision making.  The yellow bike was both a work tool and a source of adventure.  Occasionally you fell off.  It hurt.  You swore loudly.  No one could hear you.  You learnt.  You picked up the bike.  Got back on and kept going.  The yellow bike experiences helped develop grit, determination and resilience from a young age.  Many kiwis have a similar story.

With a technical background starting in geology and evolving across commercial management and regulation, Josh has experience across the energy supply chain.  This includes exploration and development through to liquids marketing and shipping, and new ventures.  Outside oil and gas, Josh advises firms across a number of industries including venture capital, forestry and wood processing, technology, recruitment, and downstream energy.

As a business development specialist Josh helps his clients identify and advance strategic opportunities as well as managing complex business and sector issues.  Focus areas include:   

• Operational governance support
• Investment and divestment
• Commercial and regulatory support
• Strategic relations.

If you have a complex opportunity or issue requiring objective, integrated thinking, then feel free to get in touch.

Email: josh@yellowbike.co.nz|M: 027 703 4307

LinkedIn: https://www.linkedin.com/in/josh-adams-a6919b3/