Solid Energy
Encyclopedia
Solid Energy is the largest coal mining
company in New Zealand and is a state owned enterprise of the New Zealand Government.
The company was formed from the former government department State Coal Mines. It was then established as a state owned enterprise
called Coal Corporation in 1987, and renamed Solid Energy New Zealand Limited in 1997. It currently has a turnover of NZ$689.8 million and produces 3.8 million tonnes of coal annually.
The company mines extensively in New Zealand's Waikato
and the West Coast
regions. Approximately half the coal mined is exported, as it is high value with little moisture, sulphur, or other impurities. Much of this is to China
, India
and Japan
where it is used in the power generation and coke industries and for the manufacture of steel
and other metals. Major domestic users include the Huntly Power Station
and New Zealand Steel
at Glenbrook
.
In 2006, Solid Energy bought Newvale Coal Co Limited and acquired the Newvale opencast mine, located in the Waimumu coal field in the Southland Region
. The Newvale mine supplies lignite
to the domestic market, including to Fonterra
's Edendale
dairy plant. In December 2010, the Terrace mine near Reefton, which had been closed since 2009, was sold to Crusader Coal. In October 2011, Solid energy opened the small opencast Reddale Mine near Reefton on the West Coast.
The other potential lignite-conversion projects are gasifying lignite to produce either urea (fertiliser) or liquid fuels. Solid Energy had an agreement with Australian company, Ignite Energy Resources Pty Ltd, to develop a lignite-to-liquid plant. The technology involved had not been proved viable at a commercial scale. Solid Energy was considering the viability of a lignite-to-urea plant with Ravensdown as partner.
In December 2010, Dr Jan Wright, the Parliamentary Commissioner for the Environment
, issued a report, “Lignite and climate change: The high cost of low grade coal”, which criticised the lignite conversion proposals for their carbon intensity, their contribution to climate change and the likelihood that they would be eligible to receive a free allocation of carbon credits under the New Zealand Emissions Trading Scheme
.
Nature's Flame produces wood pellets for home heating. This provides smokeless fuel to meet stringent new clean air standards. Nature's Flame is the largest manufacturer of wood pellets in the Southern Hemisphere, producing from three factories, located in Christchurch, Taupo and Rotorua. Nature's Flame began in 2003, when Solid Energy purchased a small wood pellet company based at Rolleston
.
Biodiesel NZ produces biodiesel from used vegetable oil and from oilseed rape crops. The business began with acquisition of Canterbury Biodiesel, a Christchurch
based company, in 2007. Production capacity was rapidly increased, initially with a target of 70 million litres a year by 2011. However, production plans for biodiesel were reconsidered in the light of significant decreases in the oil price over 2008 and 2009.
Switch was launched in 2008, providing renewable energy solutions for businesses and homes,specifically distributing wood pellet fires and solar hot water heating systems. This incorporated Sensible Heat, a Nelson-based solar hot water heating company acquired in July 2007.
Solid Energy has also applied for a resource consent
for a hydro-electric power station at its Stockton Mine
.
on the West Coast. In 2006, the Parliamentary Commissioner for the Environment proposed to undertake a review of the environmental performance of the company in 2008.
Solid Energy has also been criticised by the Ngawakau Riverwatch group and environmental groups and organisations such as Greenpeace, Forest and Bird, The Buller Conservation Group and the Save Happy Valley Coalition. The criticisms include carbon emissions, environmental damage and greenwash
ing in respect of the impacts of mining.
Resource consents were granted to Solid Energy for the development and operation of the Cypress mine
on land near Waimangaroa
. This was opposed by the environmental group Save Happy Valley Campaign
(SHVC). They claim that the mine will contribute to acid mine drainage
, climate change
and the possible extinction of a species of Powelliphanta
snail.
On 27 May 2007, Sunday Star Times reported that Thompson and Clark Investigations Ltd, a security firm employed by Solid Energy, used private individuals to spy on SHVC. A second spying episode was alleged involving Thompson and Clark attempting to employ another spy to obtain information from SHVC. Solid Energy claimed that they had no knowledge of that instance of an attempt by Thompson and Clark to employ a spy.
Coal mining
The goal of coal mining is to obtain coal from the ground. Coal is valued for its energy content, and since the 1880s has been widely used to generate electricity. Steel and cement industries use coal as a fuel for extraction of iron from iron ore and for cement production. In the United States,...
company in New Zealand and is a state owned enterprise of the New Zealand Government.
The company was formed from the former government department State Coal Mines. It was then established as a state owned enterprise
State-Owned Enterprises of New Zealand
State-owned enterprises in New Zealand are registered companies listed under Schedules 1 and 2 of the State-Owned Enterprises Act 1986...
called Coal Corporation in 1987, and renamed Solid Energy New Zealand Limited in 1997. It currently has a turnover of NZ$689.8 million and produces 3.8 million tonnes of coal annually.
The company mines extensively in New Zealand's Waikato
Waikato
The Waikato Region is a local government region of the upper North Island of New Zealand. It covers the Waikato, Hauraki, Coromandel Peninsula, the northern King Country, much of the Taupo District, and parts of Rotorua District...
and the West Coast
West Coast, New Zealand
The West Coast is one of the administrative regions of New Zealand, located on the west coast of the South Island, and is one of the more remote and most sparsely populated areas of the country. It is made up of three districts: Buller, Grey and Westland...
regions. Approximately half the coal mined is exported, as it is high value with little moisture, sulphur, or other impurities. Much of this is to China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
and Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
where it is used in the power generation and coke industries and for the manufacture of steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...
and other metals. Major domestic users include the Huntly Power Station
Huntly, New Zealand
Huntly is a town in the Waikato region of the North Island of New Zealand. It is on State Highway 1, 93 kilometres south of Auckland and 35 kilometres north of Hamilton. It is situated on the North Island Main Trunk Railway and straddles the Waikato River.Huntly was called Rahui Pokeka when...
and New Zealand Steel
New Zealand Steel
New Zealand Steel is a large steel mill located at Glenbrook, New Zealand. It uses a unique method of producing steel from ironsand, abundant on the west coast of the North Island...
at Glenbrook
Glenbrook, New Zealand
Glenbrook is a rural and industrial area in the Franklin district of New Zealand.The industrial site, that of New Zealand's major steel mill, New Zealand Steel, is not located close to any towns - the surrounding countryside is occupied by huge farms...
.
Coal operations
Solid Energy is responsible for approximately 85% of New Zealand's coal production. Annual production is around 4 million tonnes, more than half of which is exported.| Mine | Location | Type | Reserves, kt | Production, kt pa |
|---|---|---|---|---|
| Huntly East | Waikato | Underground | 2000 | 400 |
| Rotowaro | Waikato | Opencast | 14,000 | 1200 |
| Stockton | West Coast | Opencast | 16,000 | |
| Spring Creek | West Coast | Underground | 18,000 | 800 |
| Terrace | West Coast | Underground | 700 | nil |
| Strongman | West Coast | |||
| Reddale Mine | West Coast | Opencast | 140 | |
| New Vale | Southland | Opencast | 250 | |
| Ohai Ohai Ohаi is a town in the Southland Region of New Zealand's South Island. It is located 65 kilometres northwest of Invercargill and 25 kilometres west of Winton. The 2001 New Zealand Census of Population and Dwellings gave its population as 399, a decline of 22.2% or 114 people since the 1996... |
Southland | Opencast | 2,000 |
In 2006, Solid Energy bought Newvale Coal Co Limited and acquired the Newvale opencast mine, located in the Waimumu coal field in the Southland Region
Southland Region
Southland is New Zealand's southernmost region and is also a district within that region. It consists mainly of the southwestern portion of the South Island and Stewart Island / Rakiura...
. The Newvale mine supplies lignite
Lignite
Lignite, often referred to as brown coal, or Rosebud coal by Northern Pacific Railroad,is a soft brown fuel with characteristics that put it somewhere between coal and peat...
to the domestic market, including to Fonterra
Fonterra
Fonterra Co-operative Group Limited is a New Zealand multinational dairy co-operative owned by almost 10,500 New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports and with revenue exceeding NZ$19.87 billion, is New Zealand's largest company.- History :In...
's Edendale
Edendale, New Zealand
Edendale is a town in the Southland region of New Zealand's South Island. According to the 2001 New Zealand Census of Population and Dwellings, it has a population of 570 , representing a rise of 0.5% or 3 people since the 1996 census.State Highway 1 passes through Edendale as it runs between...
dairy plant. In December 2010, the Terrace mine near Reefton, which had been closed since 2009, was sold to Crusader Coal. In October 2011, Solid energy opened the small opencast Reddale Mine near Reefton on the West Coast.
Lignite conversion proposals
Solid Energy is exploring a number of 'lignite conversion' projects. Solid Energy considers lignite conversion “could unlock the vast potential of Southland’s multi-billion tonne lignite deposits by making them into high value products”. One project is to make briquettes from lignite. A pilot briquetting plant is being considered and could be built at the former Mataura Mine site, or the New Vale Mine or the former Mataura Paper Mill. In July 2010, Solid Energy reported it had run a successful trial of briquettes with US partner GTL Energy.The other potential lignite-conversion projects are gasifying lignite to produce either urea (fertiliser) or liquid fuels. Solid Energy had an agreement with Australian company, Ignite Energy Resources Pty Ltd, to develop a lignite-to-liquid plant. The technology involved had not been proved viable at a commercial scale. Solid Energy was considering the viability of a lignite-to-urea plant with Ravensdown as partner.
In December 2010, Dr Jan Wright, the Parliamentary Commissioner for the Environment
Parliamentary Commissioner for the Environment
The Parliamentary Commissioner for the Environment is an independent Officer of the New Zealand Parliament appointed by the Governor-General on the recommendation of the House of Representatives for a five-year term under the Environment Act 1986...
, issued a report, “Lignite and climate change: The high cost of low grade coal”, which criticised the lignite conversion proposals for their carbon intensity, their contribution to climate change and the likelihood that they would be eligible to receive a free allocation of carbon credits under the New Zealand Emissions Trading Scheme
New Zealand Emissions Trading Scheme
The New Zealand Emissions Trading Scheme is a national all-sectors all-greenhouse gases all-free allocation uncapped emissions trading scheme...
.
Renewable energy operations
Solid Energy has invested heavily in the development of renewable energy in New Zealand, and, as such, it has three main lines:Nature's Flame produces wood pellets for home heating. This provides smokeless fuel to meet stringent new clean air standards. Nature's Flame is the largest manufacturer of wood pellets in the Southern Hemisphere, producing from three factories, located in Christchurch, Taupo and Rotorua. Nature's Flame began in 2003, when Solid Energy purchased a small wood pellet company based at Rolleston
Rolleston, New Zealand
Rolleston is a town in the Selwyn District of Canterbury, New Zealand.It is located next to State Highway 1, 22 km south-west of Christchurch on the Canterbury Plains in the South Island of New Zealand. The town uses the slogan "The Town of the Future"...
.
Biodiesel NZ produces biodiesel from used vegetable oil and from oilseed rape crops. The business began with acquisition of Canterbury Biodiesel, a Christchurch
Christchurch
Christchurch is the largest city in the South Island of New Zealand, and the country's second-largest urban area after Auckland. It lies one third of the way down the South Island's east coast, just north of Banks Peninsula which itself, since 2006, lies within the formal limits of...
based company, in 2007. Production capacity was rapidly increased, initially with a target of 70 million litres a year by 2011. However, production plans for biodiesel were reconsidered in the light of significant decreases in the oil price over 2008 and 2009.
Switch was launched in 2008, providing renewable energy solutions for businesses and homes,specifically distributing wood pellet fires and solar hot water heating systems. This incorporated Sensible Heat, a Nelson-based solar hot water heating company acquired in July 2007.
Solid Energy has also applied for a resource consent
Resource consent
A resource consent is the authorisation given to certain activities or uses of natural and physical resources required under the New Zealand Resource Management Act . Some activities may either be specifically authorised by the RMA or be permitted activities authorised by rules in plans...
for a hydro-electric power station at its Stockton Mine
Stockton Mine
Stockton Mine, on the Stockton Coal Field, is New Zealand's largest opencast mining operation. The entrance to the mine is at the former settlement of Stockton....
.
Opposition groups
Concerns have been raised about the environmental performance of Solid Energy particularly at the Stockton MineStockton, New Zealand
Stockton is a former settlement in the northwestern South Island of New Zealand in the West Coast region. It is located in the Papahaua Ranges about 30 kilometres linear distance north east from Westport....
on the West Coast. In 2006, the Parliamentary Commissioner for the Environment proposed to undertake a review of the environmental performance of the company in 2008.
Solid Energy has also been criticised by the Ngawakau Riverwatch group and environmental groups and organisations such as Greenpeace, Forest and Bird, The Buller Conservation Group and the Save Happy Valley Coalition. The criticisms include carbon emissions, environmental damage and greenwash
Greenwash
Greenwashing , or "green sheen", is a form of spin in which green PR or green marketing is deceptively used to promote the perception that a company's policies or products are environmentally friendly.-Usage:...
ing in respect of the impacts of mining.
Resource consents were granted to Solid Energy for the development and operation of the Cypress mine
Cypress mine
The Cypress mine is a proposed extension to the open cast coal mine the Stockton Mine’s operational area, to the east into the Upper Waimangaroa Mining Permit area, on the West Coast of New Zealand....
on land near Waimangaroa
Waimangaroa
Waimangaroa is a small town located on the West Coast of New Zealand.The township lies on the south-west bank of the Waimangaroa River, at the western foot of the Mt William Range. It is 17 kilometres to the north east of Westport and 13 km south-east of Granity. The abandoned coaltown of...
. This was opposed by the environmental group Save Happy Valley Campaign
Save Happy Valley Campaign
The Save Happy Valley Coalition is an environmental activist movement formed with the express purpose of preventing the Cypress mine, an open cast coal mine on the West Coast of New Zealand, from proceeding....
(SHVC). They claim that the mine will contribute to acid mine drainage
Acid mine drainage
Acid mine drainage , or acid rock drainage , refers to the outflow of acidic water from metal mines or coal mines. However, other areas where the earth has been disturbed may also contribute acid rock drainage to the environment...
, climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
and the possible extinction of a species of Powelliphanta
Powelliphanta
Powelliphanta, common name amber snails, is a genus of large, carnivorous land snails, terrestrial pulmonate gastropod molluscs. As a group their survival status is endangered.- Taxonomy :...
snail.
On 27 May 2007, Sunday Star Times reported that Thompson and Clark Investigations Ltd, a security firm employed by Solid Energy, used private individuals to spy on SHVC. A second spying episode was alleged involving Thompson and Clark attempting to employ another spy to obtain information from SHVC. Solid Energy claimed that they had no knowledge of that instance of an attempt by Thompson and Clark to employ a spy.
External links
- Solid Energy, CoalNZ - corporate websites
- Nature's Flame, Biodiesel NZ, Switch - subsidiaries
- Save Happy Valley Coalition - opposition group