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Press Release
A steam powered future?
Timaru Courier, 9 February 2012
By Marion Mouat
An up-to $30 million investment in a steam energy production plant could attract out-of-town businesses to a burgeoning energy cluster in Timaru, plan proponents say.
The Washdyke Energy Centre (WEC) has asked Environment Canterbury for a discharge-to-air consent that will let it double to 40MW the consented capacity of its Meadows Rd plant.
It would cost the company between $27 million and $30 million to develop the plant to supply steam to a cluster of businesses in the industrial area.
If it gets consent, it is thought the four-boiler plant would cement its place as only the second operation of its kind in New Zealand to service such a cluster.
Energy for Industry industrial energy solutions general manager Stephen Jones, whose Meridian Energy-owned subsidiary owns WEC, confirmed out-of-town companies were eyeing the scheme.
Their details were confidential, but their ranks included manufacturing and processing businesses, Mr Jones told The Courier. The idea also appealed to local companies looking to improve how they got their energy, and how much they used. Their details were also confidential, he confirmed.
All up, between five and seven companies could take up the extra capacity of the expanded plant based on average steam demand, Mr Jones said when asked.
The interest was piqued as the company's first boiler began supplying steam to Dominion Breweries and New Zealand Light Leathers in December.
The first coal-fuelled boiler has a maximum heat output of 10MW and a second woodchip-fuelled boiler of similar capacity expected to be operating by June. The latest consent application seeks to add another two boilers to the plant, to double its potential output to 40MW.
Mr Jones estimated the total build price would be in the region of $27 million to $30 million. the only other four boiler plant servicing a business cluster was in Dunedin. That operation supplied steam to the University of Otago and Candbury's, he said.
Mr Jones said the second boiler would burn wood chips supplied by Meridian subsidiary Wood Energy New Zealand. There was no difference in the solid particulate emissions, but wood fuel was renewable and coal attracted carbon charges, Mr Jones said.
WEC plant manager Kevin Franks said the company believed there was a "big future" in Timaru. The energy centre could be an option for any company that needed steam, heat or hot water to process their product, and which wanted to outsource its steam supplies.
Aoraki Development Business and Tourism chief executive Wendy Smith said the plan would create a "huge amount" of spare capacity and had the potential to boost the local economy. Such an energy supply agreement could save some companies "millions on capital investment up front" - and give her organisation another selling point to encourage businesses to set up in Timaru.
New Zealand Light Leathers Ltd operations manager Simon Phillips said not having boilers on-site had been a "major benefit".
