Minister optimistic on energy

Press, 12 January 1981, Page 6

Minister optimistic on energy

PA. Wellington Investigating, the potential Of using New Zealand coal to make liquid fuel will cost about $2OOO million, according to the Minister of. Energy, Mr Birch. '. /■■■'■ But the benefits from such spending could see New Zealand being self-sufficient in fuel by the early 19905, he said. ; -...r His statement on coal resources, particularly the Southland lignite*, deposits, cornds as tile Southland resource, is, attracting increasing attention. ~ - Already British Petroleum has coal . specialists. Jn New Zealand and Mobil has left its Option open of using coal as a feedstock for its Taranaki synthetic fuel plant. Mr Birch said that new technologies were becoming available td process coal into- liquid fuel. The most at-tractive-processes for New Zealand would be those which ? produced / a middle distillate for diesel 'and' jet fuel for which there would

i be ,’the greatest growth in .demand. '■ '< I 'The Liquid .Fuels Trust : Bdard was.spending $1 mil* • lion a year already on in-, vestlgatiohs of the coal deposits and their use as well ,a's monitoring development technologies in Europe anti the United States. i The government would be able to qc ■ ider the options t when this Work had bfeen completed by the end of ,1984/85. \ ’ i-'. Mr Birclljs review of the energy scenfcwas opitmistic. He said New Zealand . had weathered the recent Iranian crisis? better than most countries Ito the credit of farmers, manufacturers, and fishermen. \ The rate of growth of ■ New Zealand exsorts had ; kept pace with the oil-im-port bill, which had. risen from less, than SSOG, miljion in 1978 ; to an estimated i $l5OO million in 498 L This i rate of .’growth .of exports would continue as Nety Zealand strengthened its bcon-

i omic base by the further expansion of agriculture rind ! the development of the • horticulture;: and fishing in* -. dustries. ... . I Mr Birch.- also spoke about : developments ; in the steel, ■ forestry,. aluminium, coal, and natural gas industries. '/There is .no- doubt that s these new directions have i placed New .Zealand on the i toad' to economic recovery ’ and, providing the momentum of investments, is main- ! tairied; the chronic balance-of-payments . deficit W'H I gradually decline in the ; 1980 s,” he said. . Rising energy bills had . made -life ; more uncomfortable in New Zealand but they meant that the coun- : try’s own resources had bei come more valuable and new developments could be justified. ; > ' , Of compressed natural gas and liquefied p troleum gas,, Mr Birch said that the Govi emment “will maintain pres- • sure on the industry to strengthen production and!

- distribution it a rapid rate.”. 1 He also spoke about the 5 Mobil ..synthetic-fuel plaht, ■ which was im the news last Week. when the latest cost : estimates, showed that the , bill for; the plant had gone , from $5OO million to $750 million. t "The Mobil process of s converting methanol to syn- « thetic petrol is still likely to ' bfe. the most immediate and • economic substitute for im- ■ ported motor gasoline with- ■ out ! the need for modi- [ flcation to the motor vehicle > fleet,” he said. A final commitment on I the plant would not be made ■ until more precise estimates t had been given to the Gov- . eminent by the New Zealand ■ Synthetic Fuels Corporation ' in June, 1981. Of the use of alcohol fuels such as methanol and eth- ; anol, Mr Birch said that , their introduction looked at* . tractive but that there were still 'many, technical and i economic questions to be roll solved. Their wholesale

adoption would involve a i long transition period. , “While many experts and : practical scientists have : their own favourite propo- ; sals, it is a matter of utmost : importance to our future 1 well-being that only those proposals that offer- price1 competitive : tech-nological’y-Sound -. rilterna1 tives should be adopted on a ■ broad scale,*’ said Mr Birch. “The Government is fully aware of the . responsibility •it carries and each new I prospect Of greater ..self-suf-ficiency is , fully tested against parameters of tech- ! nological competence, price competition, and economic I security before ntw policy commitments are ihtide../ ’ “NotwitHstinding the need for caution New Zealand has : made more progress arid has : yet more potential than 1 most of its trading'partners., I There is room for both ojM- • imism and satisfaction.”