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Andrew Caseley – Chief Executive
Gas Industry Forum November 2017
Future focus for EECA and why
EECA’s mission
Energy use profile
Sources: MBIE (2017), Energy in New Zealand & EECA (2015), Energy End Use Survey Note: Process Heat Includes process requirements, space heating, water heating and cooking. It excludes electricity.
Overarching Strategy
NZ Energy Efficiency and Conservation Strategy (NZEECS) 2017-2022
Three priority areas
15%
85%
99.9% 72%
28%
Energy in New Zealand: 2016 calendar year edition, MBIE
NZ Renewable/Non-renewable Energy
NZEECS targets
NZ Energy Efficiency & Conservation Strategy (2017-2022)
Goal: New Zealand
has an energy
productive and low
emissions economy
Gas use in NZ by sectors
0.9%
3.7%
4.8%
27.1%
30.4%
33.2%
0 10 20 30 40 50 60 70
Agriculture/ Forestry/ Fishing²
Residential
Commercial
Non-Energy Use
Electricity Generation¹
Industrial
Gross PJ
Observed Gas Consumption by Sector
Source: Ministry of Business, Innovation and Employment
1 Includes cogeneration
2 Includes transport
Emissions profile of gas vs other energy sources
Fuel Indicative relative emissions kg CO2-e / GJ
Coal 91
LPG - delivered 60
Natural gas – wholesale & delivered
60
Electricity (direct use)
(includes thermal generation) 36
Electricity (heat pump @COP=3)
12
Geothermal (direct use) 4
Wood chip
(assumes replanting of trees)
2
( diesel used for harvesting)
Gas as transition fuel to low carbon economy
EECA’s work
Energy efficiency deliverables
• Productivity improvements
• Cost reductions
• Emissions reductions
EECA – upcoming levy consultation
• EECA consults soon on its levy-funded work programme for 2018-19
• Electricity, gas, petrol and motor vehicle fuels are being levied to support energy
efficiency and renewable energy projects
• Funds from the gas levy will be invested to improve efficiency of gas use
• EECA will demonstrate the links between those groups being levied and
whether they benefit from, or cause a need for, the levy-funded
programme
• Consultation set for 16 November – 15 December 2017
• EECA reports back to Minister in February on outcomes of consultation with final decision announced in Budget 2018
Proposed gas levy funding
(Subject to Ministerial approval)
• Proposed that EECA’s 2018/19 gas levy will help fund:
1. E3 programme - standards for appliances/equipment
2. Engagement with large energy users – advice & services
3. Technology demonstrations – introduction to under-utilised technologies and processes
Improving gas efficiency – process heat
• Makes up one third of NZ’s overall energy use and 9 percent of
gross emissions
• Industrial sector uses 88 percent of process heat*. 60 percent
of process heat is from fossil fuels, mainly coal and gas
• Process heat is one of our largest opportunities to improve
energy efficiency and switch from fossil fuels to renewable
energy
• EECA & MBIE working on plan - Process Heat in New Zealand
(PHINZ)
* Sources: MBIE (2017), Energy in New Zealand & EECA (2015), Energy End Use Survey Note: Process Heat Includes process requirements, space heating, water heating and cooking. It excludes electricity.
Examples of process heat improvements
Boiler economiser (pictured) 32MW gas boiler fitted with
oxygen trim, flue gas economiser and condenser achieving
90% efficiency
ANZCO
Fonterra
Refrigeration & hot water heat recovery, plus boiler upgrade programmes
Achieving 16 % energy savings reduction and carbon emissions reduced by 14%
Whakatane Mill Gas boiler tuning and control helped achieve
6% reduction in energy use saving $500 thousand each year
Questions?