Energy minister gives thumbs up to lignite
The man who will drive the Government’s energy policy for the next three years says lignite is the most promising development in Southland’s suite of potential oil and gas opportunities.
Energy and Resources Minister Phil Heatley said he believed lignite offered the biggest opportunity to grow Southland’s economy in the immediate future.
Heatley took over his ministry after the November election. The job was previously held by Gerry Brownlee, although since the Christchurch earthquake Hekia Parata has been acting minister.
Using the lignite resource in eastern Southland was inevitable, but the speed of its growth and size would depend on economic and environmental factors, Heatley said.
‘‘My tip is Solid Energy or someone else will progress lignite exploitation in Southland. It’s a matter of pace and degree.’’
Solid Energy planned to mine lignite in the Mataura area and process it into briquettes for fuel, with a potential expansion into fertiliser production. The plan had drawn criticism from landowners, residents and environment- alists, but Mr Heatley said developments would press on.
‘‘It’s really a matter for applicants and those who want to invest . . . we’re not going to interfere much.’’
Any companies moving into the area would be bound by environmental obligations which had to be met, otherwise development would not proceed, he said.
‘‘New Zealand has made it pretty clear [we] take the environment pretty seriously.’’
Questioned about how the Government could ensure Mataura and Gore got the economic benefit from lignite, he said there would be increased business activity in the area and investment in the community from the companies.
‘‘One way or another there is going to be a technical labour force on this working on the ground, and Solid Energy, or any other company, are going to have to manage those people.’’
Developments in coal seam gas and oil would also provide opportunities for Southland, however the region would have to initially import experts and people with appropriate technical skills.
‘‘We want to see operations start small and grow,’’ he said. ‘‘If Southland starts going off you’ll have to import expertise [and that] would be from other places in New Zealand . . . that’s what we’d like to see. Several years down the track Southland will grow [its own] expertise.’’
The Government remained committed to producing 90 per cent of New Zealand’s electricity from renewable sources, but oil and gas exploration, both for electricity and other uses, would continue.
‘‘There’s a place for oil, gas and mineral deposits to contribute to electricity generation for some time yet,’’ he said.