Refinery plans new co-generation plant

Thursday 29th April 2004

An allocation of carbon credits under the Government's Projects to Reduce Emissions programme, announced today, has boosted the New Zealand Refining Company's plans for a new electricity generation plant at the Marsden Point Refinery.

The New Zealand Refining Company General Manager, Thomas Zengerly, said if the new plant proved to be viable it would provide an efficient, independent and more environmentally sustainable source of energy both to the Refinery and to Northland from 2007 onwards.

"This is an exciting project that has the potential to create enough electricity and steam to meet all of the Refinery's needs and give a significant boost to the country's total generation," said Zengerly.

"Both the local and regional councils are supportive of the project and there is already strong interest from potential customers regarding the plant's surplus power," he said.

Zengerly said the Government's decision to award carbon credits had supported the Refinery to consider the project. The New Zealand Refining Company will decide by April 2005 whether or not to proceed with the project.

Zengerly said the viability of the project would hinge on external factors such as the availability and price of natural gas and biomass, which would be needed as fuels to top up the gas produced by the Refinery.

If it goes ahead, the Refinery's Co-generation Facility will consist of two 42 megawatt gas turbines creating 690 gigawatt hours of electricity per year. The Refinery would use 290 gigawatt hours of that electricity, exporting 400 gigawatt hours back to other customers in the region.

The New Zealand Refining Company is developing the project with its preferred partner, HRL Limited, an Australian energy, technology and project development company.

Managing Director of HRL, Peter Lamell, said the company was excited by the project and the partnership with The New Zealand Refining Company.

"Our plan involves making the most efficient use of the available resources to generate electricity, including harnessing the heat from the turbine exhausts and using biomass to produce steam," said Lamell.

"This project has the potential to be an important contributor to the Refinery, to the environment and to both the local and national economy," said Lamell.

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