October update

That attention has led to a slew of policy proposals from across the political spectrum that should be of interest to everyone in the energy sector.

As the election draws closer, pundits are keen to group parties into blocs.

Green Party
The Green Party's energy policies have centred around their Clean Power Payment initiative, which would provide up to $6,000 (with optional $30,000 interest-free loan) to better insulate homes, replace fossil-fuel appliances, and purchase rooftop solar. The policy also includes tax deductible zero carbon upgrades for rental homes.

Elsewhere, the Party has made a commitment that New Zealand will "lead the world in reducing gross domestic emissions of all greenhouse gases, and will be on track to end fossil-fuel use and production no later than 2035, through legally binding mechanisms."

The party “reject[s] false solutions, delaying, or diversionary strategies, including gas as a ‘transition fuel’, carbon capture storage, unsustainable biofuels and biomass, grey or blue hydrogen, and municipal solid waste-to-energy systems including incineration and pyrolysis.”
 

Māori Party
Energy policy has not featured prominently for the Māori Party this election. Their energy policies are more extensions of their climate change policies. These include withdrawing "existing onshore and offshore oil and gas permits that are yet to be exercised and aspire to have sites decommissioned within 10 years." And a pledge to establish a $1bn scheme called Pūngao Auaha to support Māori-owned community energy projects.

The Party also wants the Crown to establish a national Māori strategy for renewable energy and clean technology. This strategy would enable the negotiation of partnership agreements between the Crown and specific hapū and iwi on renewable projects.

Labour Party
The Party has announced several energy commitments under their plan to ensure that electricity generation is 100% renewable by 2030. This includes a $70 package to accelerate a dry year storage solution, such as pumped hydro at Lake Onlslow. The Party also wants to see accelerated electrification of transport and industrial sectors, and has pledged to investigate emerging technologies such as green hydrogen.

In the Party's Climate Manifesto, they have committed to a range of policy initiatives that would affect the energy sector. These include establishing a Centre of Excellence for Renewable Energy to deliver training opportunities for new energy workers; developing a strategy to make sure 50 percent of total energy consumption is from renewable sources by 2035; a commitment to fast-track renewable energy generation; and ensure there is a regulatory framework for offshore wind farms by 2024.

Elsewhere in the Climate Manifesto, the Labour Party committed to developing a regulatory framework for carbon capture and storage technologies, for capture of CO2 both at the point of emission and from the air.

The Party has also announced a solar policy, in which they committed to an initiative to incentivise rooftop solar with grants of up to $4,000 per household.

New Zealand First Party
New Zealand First recently released its comprehensive policy manifesto, which includes a sizable section on energy and resources.

The centrepiece of this appears to be their pledge to establish a Ministry for Energy while abolishing the Electricity Authority. The Party also wants to force electricity generators to divest themselves of retail, while allowing local lines companies to enter retail as well as generate their own electricity as a way to increase market competition.

Fuel security and resource security is also a prominent theme for the Party. They have vowed to implement a Fuel Security Plan to ensure that New Zealand to reduce supply or refinement challenges by taking advantage of our own resources such as oil, gas, and coal, while banning the importation of foreign-sourced coal.

Elsewhere, the Party has said they want to repeal the Crown Minerals (Petroleum) Amendment Act 2018 that introduced the ban on offshore oil and gas exploration. The Party will also examine whether there is potential for a state-owned exploration company to explore the Great South Basin and Canterbury Basin.  

National Party
The National Party's energy policies have been centred around their Electrify NZ announcement. This document outlines the Party's ambition to double the supply of renewable electricity by requiring renewable electricity project consents to be issued within one year. They also pledge to eliminate consent requirements for upgrades to electricity transmission and lines infrastructure.

In their larger Rebuilding the Economy policy document, the Party reiterates their commitments above and also explains that they will repeal the ban on oil and gas exploration to reduce New Zealand's reliance on imported coal.

The party will scrap the Clean Car Discount, but will invest $257 million to deliver 10,000 public EV chargers, using the ultra-fast broadband (UFB) funding models through its National Infrastructure Agency.

ACT Party
In the policy document Affordable and Reliable Energy, the ACT Party commits to five policy areas for the energy sector, with the most prominent being to reverse the ban on oil and gas exploration.

Elsewhere the Party states that they are determined to get the state out of energy development, and pledge to dump the Lake Onslow pumped hydro scheme that is continuing to be investigated by the Government.

The Party also has a focus on renewables, with a commitment to fast-track permit development to make offshore wind projects easier to permit. ACT has also pledged to introduce a regulatory framework to support carbon capture use.

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Overview

As you can see above, across the political parties there are myriad views on what New Zealand's energy future looks like. Some of these are a predictable continuum from left to right, while others - such as commitments to carbon capture and storage - cross that divide.

Over the past years we have championed calls for New Zealand to introduce a regime that would allow carbon capture projects. We know that they can play an important role in helping our country achieve its net zero emissions goals, so it is heartening to see so many political parties take up the call for the adoption of these technologies.

Elsewhere, we are encouraged by comments made by several political parties about the need to resume natural gas exploration. As we have long said, natural gas helps pick up the slack when weather-dependent renewables cannot supply enough electricity when Kiwis need it.

Natural gas will be increasingly important as a back-up for renewables, as all most political parties have campaigned on increasing the amount of renewable generation in New Zealand's energy mix. A more electrified economy will help New Zealand electrify industrial processes and support the uptake of more electric vehicles.

This is an exciting time for New Zealand's energy sector, with all political parties taking an interest in helping to shape our energy landscape.

Readers of this newsletter may recall that several months ago we joined forces with seven other energy and resources industry organisations to pen an open letter to all political parties about the policies that are important to our sector. It is heartening to see so many of them adopted by parties from all corners of the political arena, though some of the policy proposals listed above look to be more about climate change than core energy policies focused on energy affordability and security.

You can assess how well the various parties' policies will deliver the policies sought by the communique here.

Whatever the outcome of the election, Energy Resources Aotearoa can and will find common ground with our new Government to promote a prosperous and plentiful energy future for New Zealand.

Offshore wind to take off

John was recently interviewed in Taranaki for a Newshub story about the future of offshore wind in the region, and how a lack of legislation could deter investors.

Taranaki can be a windy place, and the South Taranaki Bight has long been touted as a prime location for offshore wind farms. The abundant wind resource, combined with Taranaki’s deep understanding of the energy economy and skilled workforce, make the region an attractive place for the development of offshore wind farms.

However, lack of legislation to enable the construction of offshore wind farms is holding the region and developers back.

John caught up with Newshub’s Isobel Ewing to discuss the potential of offshore wind in the Taranaki region, and how it could be a great addition to New Zealand’s energy mix.

He also made the case that while offshore wind can help meet New Zealand’s energy needs, natural gas will also continue to play a prominent role in our energy future to enable more intermittent renewable energy.

Worries lack of legislation for offshore wind farms will deter investors from building in Taranaki - Newshub

New Zealand Energy Excellence Awards

On 30 August we attended the New Zealand Energy Excellence Awards in Christchurch. This annual event showcases and celebrates the innovative work being done across the energy sector.

This year we were proud to sponsor the Low Carbon Future Award.

Finalists for this award comprised:

• Ecogas – Closing the food and energy loop through anaerobic digestion
• Ngāwhā Generation – New Zealand’s first zero carbon emitting geothermal power station
• Octopus Energy – Making demand flexibility happen for a low carbon future

These three high-quality projects made for a tight competition. However, the award was ultimately won by Ecogas for their project which sees food waste converted into anaerobic gas. More about this project can be found here.

A big thank you to all of the finalists, and to Freeman for organising what was a fantastic evening.

Residential solar proposal

The Party has also committed to provide $2 million towards community solar initiatives.

Our Chief Executive John Carnegie joined Kate Hawkesby on Newstalk ZB's Early Edition to discuss the policy. He noted that New Zealand's energy system is largely renewable already, and that residential solar costs a lot more than the $4,000 per household being proposed.

We are currently developing a fantastic programme for the final Energy Resources Taranaki Forum of 2023.

Join us this November in New Plymouth for what will be an exciting day of post-election analysis, deep dives into carbon capture, and case studies on how the energy sector is playing a role in our low-emissions future.

Confirmed sessions include:

• Leaders' Panel: What does the outcome of the election mean for the energy sector?
• MBIE update: Workstreams, new priorities, and progress
• Ngā iwi o Taranaki perspectives and Mātauranga Māori: Responsibly engaging with our communities
• Panel: Getting energy infrastructure right
• Operators' Forum: Updates and next projects

Don't miss out on this standout event for the energy sector. Sign up to receive updates as the programme is released or register for the Forum here.
 

Oil and gas commitments

Newstalk ZB's Heather du Plessis-Allan for our impressions of the policy announcement, and what it would mean for the energy sector.

North Sea carbon capture

The NSTA estimates that the locations could store up to 30 million tonnes of carbon dioxide per year by 2030. That figure is approximately 10% of the UK's annual emissions.

Offshore Energies UK, roughly the UK equivalent of Energy Resources Aotearoa, estimates that the country will need at least 100 of these types of carbon storage licenses in order to reach its net zero emissions targets.

Storing emissions near Bluff?

The latest such proposal is near Bluff, in the deep south.

Dunedin-based company Weora is investigating sites for carbon storage through mineralisation. This is a process where magnesium-rich rocks are exposed to carbon dioxide, chemically react with it, and in doing so form new carbonite minerals. This process permanently binds the pumped carbon dioxide to the rock.

We have long advocated for New Zealand to embrace carbon capture and storage as a way to reduce our hard-to-abate emissions, such as those from manufacturing and energy production.

It is fantastic to see another firm thinking ahead to how they could make the most of an opportunity on the horizon.

Rosebank field given green light

"I want more offshore wind, I want more nuclear and, in transition, I want more gas that comes from home rather than imported from abroad at two, three times, four times the carbon emissions," said Sunak.

The Rosebank field lays 80 miles west of Shetland and is believed to contain up to 300 million barrels of oil.

Internship opportunities

Do you know of any university students studying chemical engineering or finance/accounting?

We are on the lookout to place our final two interns with our member companies in the beautiful Taranaki region this summer.

These are great opportunities for students looking to get a head start in their career working for one of several leading energy sector firms.

To learn more about these opportunities, please contact Sheree Long, Director, Workforce Development.

Member profile:
Australian Energy Producers

Previously known as the Australian Petroleum Production & Exploration Association (APPEA), the change reflects the growth and evolution of Australia’s oil and gas industry and its important and long-term role in enabling the transformation of the nation’s energy system. 

Australian Energy Producers represents the businesses that are ensuring energy security and delivering substantial economic benefits to Australia while helping to deliver a cleaner energy future. 

Many of the Australian companies among the organisation’s 170 members have already expanded their focus beyond oil and gas exploration and development to also cover the net zero building blocks of low-carbon hydrogen production and carbon capture utilisation and storage (CCUS) technologies. 

The industry is responsible for powering millions of homes and businesses, both in Australia and overseas, while delivering substantial economic benefits to Australia, supporting 80,000 jobs and contributing A$16 billion to Australian governments to fund services and infrastructure last year. 

Australian Energy Producers inherits a proud history dating back to 1959 when the lobby group was formed as the Australian Petroleum & Exploration Association (APEA). 

The annual flagship industry event, previously known as the APPEA Conference & Exhibition for over 60 years, will continue as the Australian Energy Producers Conference & Exhibition. 

Next year’s conference and exhibition in Perth from 20-23 May will remain the premier platform for energy policy debate while showcasing the innovation, investment and expertise our sector brings to Australia’s energy transformation. 

More information visit energyproducers.au and energyproducersconference.au.