Gas Plant Wanted To Use Waikato Coal

Press, Volume C, Issue 29623, 20 September 1961, Page 11

Gas Plant Wanted To Use Waikato Coal

"The Press" Special Service

AUCKLAND, Sapt. W.

The Huntly Borough Council will ask the Government to construct a gas plant, estimated to eost £5 million, at Huntly to pipe gas to Auckland and Hamilton. The plant would use the Lurgi process, which would produce gas for half the cost of conventional processes and would be suitable for use with Waikato coal. The council’s case is based mainly on a report by an officer of the Department of Scientific and Industrial Research. Mr P. A. Toynbee, who went overseas in 1955 to study the Lurgi process. Hie report, made in 1956. suggested to the Government that urgent consideration be given to the installation of a Lurgi plant on the Waikato coalfields. It would have an average output of 18.18 million cubic feet of gas a day. with a peak load production of 28.8 million. The report favoured the process because of its several advantages over conven-tionally-produced gas which were:— Efficiency: A water-heating efficiency of more than 85 per cent. Cheapness: Costs only 8.9 d a therm to produce as against 17.4 d for conventionally-pro-duced gas. Pressure: As the process of gasification is under high pressure, this pressure could be used to pipe the gas to Auckland and even to remote suburbs of Auckland. Supply: The supply of West Coast coal, practically the only New Zealand coal suitable for the production of conventional gun. is limited.

Transmission: The only cost of transmission would be the capital cost of the pipeline. On 1956 transport costs, this alone would mean a saving of 1.27 d a therm.

The figures on the eost of production were based on the assumption that the plant would be running at full capacity. This could not be expected at once, as the demand would have to build up gradually.

However, even if it was running at one-quarter capacity. and Auckland alone would more than supply the demand necessary for this, the cost of gas would be only 12.7 d a therm, as against 17.4 d. Mr A. W. Jupp, chairman of a committee which the council appointed to go into the question, said that the council had its case prepared and was only waiting for a report of a combustion consultant it had employed to assess the potential market for the gas in Auckland before making an approach to the Government.