Use existing systems to cut emissions, Methanex advises
AUCKLAND: New Zealand has a lot of ‘‘lowhanging fruit’’ it can pursue now with known technologies to start reducing greenhouse gas emissions, Methanex New Zealand managing director Dean Richardson says.
The company, the country’s biggest user of natural gas, said the country had a ‘‘very ambitious’’ 2050 target for emissions reduction. However, the Government appeared to be attempting a 50year technology ‘‘jump’’ to achieve that when lowercarbon fuels and techno logy were available now, particularly in thermal energy for industry, Mr Richardson said.
Methanol could remain part of that longerterm transition given it was now being made from renewable processes at some sites.
‘‘The world sees methanol and gas as part of the solution whereas New Zealand currently is seeing gas as part of the problem,’’ he said yesterday.
The Government will today start hearing submissions on legislation to effect its ban on new offshore exploration and restrict onshore exploration to Taranaki. The ban, intended to signal a longterm transition away from fossil fuels, has created uncertainty concerning longterm gas supplies and reduced international interest in exploration here, critics say.
Vancouverbased Methanex is the world’s biggest maker of methanol, which is widely used in textiles, paints, building products and plastics but the firm is selling more of its product in Asia as a fuel additive and as a replacement fuel to coal for use in boilers.
New Zealand accounted for more than a quarter of the firm’s global production last year.
Mr Richardson was speaking yesterday after touring the 186m Taranaki Sun, one of seven dualfuel tankers that runs on methanol, and which the group commissioned two years ago. The company’s tanker business, Waterfront Shipping, has another four such vessels under construction.
Methanex opted to run the vessels on methanol to meet new International Maritime Organisation fuel standards aimed at reducing sulphur emissions. They take effect from 2020.
Choosing that capability added about $US2 million ($NZ3 million) to the $US50 million cost of each vessel, he said.
New Zealand has yet to sign up for the new standards for domestic shippers. Most ships operating internationally will be captured by the new regulations.
Mr Richardson said shipping firms would all face different choices about the fuel options they selected but, as a starting point, New Zealand should adopt the new standard.
Relative to other alternatives, such as lng or ultralow sulphur diesel, methanol provided a small additional reduction in carbon dioxide emissions but a ‘‘dramatic’’ cut in emissions of polluting particulates and sulphur oxides, and greenhouse gas nitrous oxide emissions.
Using a New Zealandmade marine fuel would not only contribute to the country’s emission goals but would also add to its fuel security, Mr Richardson said.