Tide has turned and coal is flowing back in

Press, 9 December 1980, Page 25

Tide has turned and coal is flowing back in

By

OLIVER RIDDELL

“King Coal” is back. There is growing optimism about the future in the coal industry and this is reflected in a 20-page booklet — “Coal into the Eighties” — presented to the Minister of Energy (Mr Birch) by the industry’s marketing arm, the Coal Merchants’ Federation. The booklet contains an eight-point plan for the development of the New Zealand coal industry. But perhaps even more significant is the tone of the booklet. It says that the industry is .moving "into .exciting times” because “the energy tide has turned.”

As the price of oil continues to rise there is a renewed interest in coal as an energy source, according to the federation’s president, Mr Ivor Stanley, of Timaru. Coal in both the industrial and domestic sectors can play an ever-increas-ing and vital role. The industry feels it must ensure that coal is properly prepared for the market, and carried to that market efficiently and cheaply. In June, 1980, the total estimated recoverable reserves of coal of all types in all categories was 3700 M tonnes. This figure assumes that 50 per cent of the known South Island lignite fields prove to be economically recoverable. There are 165 M tonnes of bituminous coal, 607 M tonnes of sub-bituminous, and 2927 M tonnes of lignite.

The energy content of this coal is assessed in petajoules (a term meaning a million million joules). One petajoule is

equivalent to 34,500 tonnes of bituminous coal, or 43,500 tonnes of subbituminous, or 83,000 tonnes of lignite, reflecting the quality of the three different coal types. The joule, itself, is a very small measure. It is defined as the heat generated by a current of one ampere flowing for one second against a resistance of one ohm. “Our coals, when properly prepared to suit the modern, sophisticated combustion systems, are comparable with the very best in the world,” says the booklet. “When the vast reserves

of coal in New Zealand are considered, it is difficult to understand that, since the oil crisis in the early 19705, there has been no significant increase in the country’s total consumption of coal.”

There are two main reasons for using coal — its low cost, and its availability now and in the longer term. Because of the size of its reserves, coal is expected to retain these advantages over other fuels. In Auckland, coal can be delivered on site for 18c per therm as against gas at 40 to 50c per therm, and oil at about 60c.

One of the problems facing potential coal users is the extra capital needed for coal plant as against that for either gas or oil. But the initial cost must be weighed against the long-term cost benefits

and availability of coal. To make the switch a more attractive business proposition, the Government has introduced incentives for capital expenditure on coal-fired equipment. The industry made eight recommendations to the Government for the development of the industry: Improved preparation of the product for the industrial market. Continued drilling to prove the true potential reserves. An incentive scheme for industrial users to switch from oil to coal.

Increased research. A campaign to educate the public and increase the awareness of the potential asset coal is to New Zealand. The funding of a major marketing campaign. To develop the industry as a clean and convenient alternative energy.

Monitor overseas developments and encourage, wherever possible, the processing of New Zealand coal within the country to produce its many byproducts rather than exporting it in its natural state.

The industry sees coal reserves providing jobs for thousands of people, and believes that coal can lead the way to New Zealand’s quest for energy selfsufficiency and save the massive drain on overseas funds to pay for oil.