Future Focus for EECA and Why - gasnz.org.nz

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?