7 April 2014

The government is considering whether to support an EECA idea, to create regional heat hubs, based on the use of harvest debris from plantation forests as a commercial fuel source.

In a speech to a Sustainable Business Council and BusinessNZ Energy Council breakfast on Monday, energy minister Simon Bridges said the Energy Efficiency and Conservation Authority (EECA) estimates that New Zealand firms could unlock $1.6 billion in annual savings through improved energy management.

"About 42 per cent of New Zealand's carbon emissions are from energy use. Transport, industrial heat and the heating of commercial buildings are responsible for three quarters of that. I have been working with EECA to look at energy efficiency initiatives to help improve our productivity and reduce emissions in these areas."

He told the breakfast the government would be supporting three initiatives: Improving the energy efficiency of meat and dairy processing plants, expanding the heavy vehicle fuel efficiency programme and encouraging the use of more fuel efficient tires on commercial and private vehicles.

Another area with potential is the use of wood from the forestry sector that otherwise goes to waste.
"While I am not making an announcement on this particular subject today, I did want to signal that EECA is currently exploring the feasibility of solving this issue by creating a network of supply and demand through a renewable heat hub," Mr Bridges said.

"It is difficult for regions to develop a renewable resource without businesses committed to using it. It is also difficult to persuade industrial and commercial heat users to switch to renewables without an assured supply.

"As well as energy efficiency gains and reductions in carbon dioxide emissions, this type of project could offer security of energy supply and reduced costs for industrial and commercial heat users."

Source: Abstracted from speech by Hon Simon Bridges