NEW GAS PLANT

Nelson Evening Mail, Volume LXVI, 4 March 1932, Page 7

NEW GAS PLANT

OPENING CEREMONY PERFORMED CITY TAKES OVER “WITH FULL CONFIDENCE” The ceremony of the official opening of the new gas plant which has recently been erected, was performed by the Mayor (Mr W. J. Moffatt) yesterday afternoon in the presence of a. representative attendance of the public. An apology was made for tiie absence of the Town Clerk (Mr G. A. Edmonds) owing to his wife’s illness. It was stated that this was the first public function connected with the City Council that lie had missed in 33 years. MAYOR’S ADDRESS Mr Moffatt, in addressing the gathering, remarked that it was very pleasing to him to see that a large number of citizens had been sufficiently interested to attend the ceremony that afternoon. The. gasworks originally belonged to tiie old Provincial Government and were vested in the Citv Council on the City becoming a municipality in 1874, said tiie Mayor. At that time there were two loans existing in respect to the works, one for £14,500 and the other for £6OO. These two loans have not yet been fully paid off, having been renewed from time to time. At present the sum of £11,047 is owing in respect of these loans of which £10,447 becomes due on the Ist May next and negotiations are now in progress for its renewal less the amount of accrued sinking funds. “These Joans are a legacy from tiie bad old times when the slogan was ‘Let Posterity Pay’ and when no provision for redemption was made by way of sinking fund. The consequence has been that these loans have always been in tiie nature of an encumbrance. It- is anticipated that by the time tiie forthcoming renewal loan matures in 17 years time they will be entirely wiped off. The only other loans which were raised for gasworks purposes were a small loan of £2500 for reticulation purposes and the loan of £28,000 which has recently been raised for erecting tiie present new plant. The £2500 loan matures in 1936 and the £28,000 loan in 1951. Sinking funds have been provided which will enable these loans to be paid off as they mature. LARGE. MAJORITY AT POLL The poll on the new plant was taken in 1930, went on the Mayor, and although there had been a very poor response yet the great majority of those who did vote were in favour, tiie majority biting 508. The work had been completely let to a Sydney firm and he had been given the assurance that the plant was absolutely perfect, so that all could have the completes! confidence that everything in every way was satisfactory. The city would take over with full confidence. The Mayor said that confirmation of this statement would be received in a letter shortly from Mr Belton, the engineer of the Christchurch Company on whose advice the new type of plant was decided upon. Owing to the contractor, Mr Wellings, having to leave for Sydney immediately, the ceremony had been put on rather in haste, and as a compliment to Mr Wellings to enable him to be present at the opening. PROVISION 7?OR INCREASING CONSUMPTION Mr Moffatt quoted some very interesting figures in connection with the progress of the gasworks over a long period. In 1924 the consumption had been 69,000,000 feet, and following tiie advent of the electric plant in the same year the consumption dropped to 57,500,000 when estimated in 1925. In 1926 there was a further drop to 56.000,000 feet, but in 19(27 the consumption began to rise, reaching 58,000.000 feet, and the rise had continued till in 1931 the consumption was 69,723,000 feet. So that it was seen in that year that- it was important that provision had to he made for the increasing demand for gas. The speaker mentioned that the works were under the inspection of the Government, and a high charge was made for this work. LOW PRICE OF GAS IN NELSON The City Council had reason for congratulation that the price of gas in Nelson had remained 6s 8d per 1000 feet since the war. In comparison with other places in the Dominion that was verv fine. The gasworks had shown a profit of a sort. Mr Moffatt quoted figures taken from Government reports showing the price charged for gas in other towns, ranging from 13s 4cl at Foxton down to 6s 8d at Wanganui, Westport and Nelson, and 6s 3d, the lowest, at Dunedin. “No one need coinplain at being beaten by Dunedin,” said the Mayor, “as' it is as economically administered as any city in any part of the British Empire.” He might state that' that city had recently erected its town hall out of the profits of trading enterprise. USING NEW ZEALAND COAL There was a big saving in using Now Zealand coal, went on Mr Moffatt. In tiie horizontal system of .retorts it was most desirable to use New Zealand coal. They could use it to advantage without having to import from outside. That was satisfactory to the West Coast and Nelson. At the present time coal could he obtained in fair supply without importing. The total indebtedness on the gasworks, the speaker remarked, was £38,928.

Mr Moffalt wished to thank Professor Easterfiekl for his help in the initial stages of the enterprise, in educating the Council on the making of gas (laughter). “I don’t mean the kind of gas vou mean.” said the Mayor as the joke went round. DEPUTY-MAYOR. SPEAKS Councillor Watson added a few words on behalf of the City Councillors. They had that afternoon the opportunity of inspecting the most up-to-date plant in the Dominion, as the result of which the output would be enormously increased. There had been no extension of the gasworks for many years. He recalled that the old gasworks were constructed out of the bricks of the old Nelson Hospital which stood in Examiner street at the foot of Mount street. It was his pleasing duty to congratulate the contractor on the manner in which the work had been done and they would take over with every confidence. Following the speeches the gathering witnessed the turning on of the power by the Mayoress. CONTRACTOR REPLIES Mr F. Wallings, Ihe contractor, in reply ing, stated that lie was pleased with the success of the undertaking, and I hat. the plant wijs now supplying the city ot Nelson, lie was glad to be able to say that not once had there been a dispute with the Council in matters pertaining to the work, and now it was finished Nelson had the most up-to-date plant of its kind in Australia and New Zealand. In the erection of the plant the

labour had been drawn lo the extent ol 80 pur cent, from Nelson. Mr Johnston, his engineer, who had travelled to many parts of the world and had experience with workers had staled that he had never had better men on any of Ins works. Mr Wellings concluded by asking Mrs Moffatt to accept a rose bowl as a small memento of the occasion ol the opening of the pew gasworks plant. Those present then spent seme tune in inspecting the plant. NEW RETORTS DESCRIBED The horizontal retort plant consists of three settings each of six through retorts each measuring 23ft x 16in x 20tt, constructed of the best quality silica of Meltliain and Consult manufacture, with single piece fireclay ends to carry the retort mouthpieces. The settings are ol Drake’s construction with patent tubular regenerators. The settings are constructed with a flat top in accordance with Toogood’s patents, instead of arched, as this construction enables the settings easily to be converted at a later date from 6 retorts in three tiers to 8 retorts in four tiers. The stoking machines, backstays and mains are constructed to allow of extension if necessary. The new plant includes an electric generator which drives by direct current the stoking machinery (including coal elevator and charging machine), also the colic bus which carries the coke from the retorts lo the yard along a tramway. The ascension pipes from the retorts are fitted with Congdon’s patent scrubber stand pipe system which pumps a continuous supply of water through the pipes, keeping them cool and clear of thick tar. The tar and ammonia collected by the liquid goes over a weir to the tar separator tank, from which tiie liquid is pumped back through the pipes again. The coal carbonising capacity of the plant is 21 ton 12 cwt of New Zealand slack coal per 24 hours. This capacity would not he possible with fireclay retorts, but is easily possible with the silica retorts. At the present time only one bed is in use, and is being worked in-conjunction with the old retorts which makes the maintenance of a regular good quality difficult. However the second bed is now being gradually warmed prior to its receiving its first charge of coal in about two week’s time. After that the whole town supply will be dependent. on the new plant. It is anticipated that two of the three beds will be able to carry on the supply, at any rate during the summer. A Blue water gas plant has been erected at tiie corner of the old retort house adjacent to the cool store, but it has not yet been used. When the new retorts are in full operation this plant-, which makes gas from coke, will be used and the water gas will bo mixed with the coal gas m the mains. Only about 20 to 30 per cent, of water gas can be mixed with the coal gas if the quality is to be maintained. The water gas plant, patented by James Lowe, of Auckland, New Zealand, was constructed by Davis anil Partner, Ltd., London, and erected by Dougall Coombs and Co., Wellington, New Zealand. The contractor for the erection of the main new plant was J. F. Wellings, Sydney. PROCESS OF MANUFACTURE The mail in the street may not be aware of the process by which gas is manufactured, and the following outline may prove interesting. From the burnt coal in the retorts, the gas, with all the by-products in suspension, is pulled off by a regulated vacuum into the foul main which leads to the condensers, long vertical tubes, in which most of the pure tar is precipitated. The gas then goes through a washer and scrubber where the ammonia is taken away, and continues to the oxide of iron purifiers where the sulphur is taken from the gas. At this stage the gas passes through the station meter to the holders from which the town supply is drawn. COMPARATIVE FIGURES The following figures show the increased consumption of gas since 1882: — cubic feet. 1882 12,000,000 1890 17,000,000 1900 26,000,000 1910 37,000,000 1915 48,000,000 1918 48,500,000 1919 50,500,000 1920 54,500,000 1921 56,500,000 1922 58,500,000 1923 63,500,000 1924 69.000,000 1925 57,500,000 1926 56.500,000 1927 58,000.000 1928 59,000,000 1929 59,500,000 1930 64.500,000 1931 69,723,000 In 1924 the consumption reached 69,000,000 cubic feet, but in the following year the result of the installation of electric light showed its effect and in 1926 56,500,000 cu. ft. were used. Since then there has been a. gradual increase, and last year saw the highest consumption in the history of the works. •

PROPOSAL TO INTRODUCE GAS FIRST MOVE IN NELSON As far back as 1361 a proposal was brought forward to light the Nelson streets with gas by a joint stock company, as is shown by a letter sent to the Board of Works for' that year. The letfpr qtntod • “Nelson, 4th July, 1861. “Sir, —As I am about to form a joint stock company for the purpose of lighting, a portion of this city with gas, I have the honour to request an expression of opinion from the Board of Works ns to whether they are favourable, or otherwise, to the proposal, and whether they are disposed, under certain regulations, to allow the company to break up the streets for the purpose of laying down the pipes. It is proposed at present to extend the operations of the company only to Bridge street and Trafalgar street, and I should be glad to know whether the board would be likely to erect public lamps in those streets. Iron lamp posts with glass lamps would cost about £2 10s cadi in London.—l have the honour to he, sir, your most obedient servant, “J. I. BAILEY. “The Chairman of The Nelson Board of Works.” LOAN FOR NEW WORKS The gas undertaking, now the property of the Nelson City Council, formerly belonged to the old Provincial Government. In the year 1877 (three years after the incorporation of the City as a Borough), a special Act was passed vesting I lie gns and waterworks undertakings in the city subject to the payment of certain then existing loans amounting to £30,000 and £5,900. Of those two loans tlie Gasworks share was £14,500 and £6OO respectively—or a total of £15,100. As some doubt had arisen as to whether the cms and water undertakings had actually been vested in the Nelson City Council by the Act of 1877 a. further Act was passed in 1880 which placed the

matter beyond all doubt. The loans above referred to matured as to the £14,500 in 1922, and as to the £6OO in 1906. Of the £14.500 loan. £4,053 was paid oft leaving £10.447 still owing. This latter loan matures in 1932 and the £6OO in 1936. The rate of interest on the £10,447 loan is 6j per cent, and a sinking fund of 1 per cent, is provided. The rate of interest. on the £6OO loan is 4j per cent, and a sinking fund of lj per cent, is provided.

In addition to the loans mentioned the Council raised a further loan in 1906 of £2500 for the purpose of laying new gas mains. The interest and sinking fund thereon are 41 per cent, and lj per cent, respectively. It will thus be seen that the total loan indebtedness on the gas undertaking amounts to £13,547. The total accrued sinking funds on these loans amount to £2,877 only. Various sums have been advanced from the General Account to the Gas Account from time lo time, and when some years ago the Council determined to place the. gas undertaking on a commercial basis it- was estimated by the then Town Clerk and tiie financial export lwho were responsible for making the necessary alteration that a sum of £17,000 would be an equitable amount to consider as having been advanced to the Gas Account from the General Account and upon t his amount interest at 5 per cent, or £BSO per annum was until the year 1916 paid by the Gas Account to tiie General Account-. In that year as ilio Gas Account- had got into debit, the Audit Department disallowed the payment of the £BSO and it had to be discontinued until such time as the Gas Account should again come into credit. The Gas Account did not come into credit until after 1922 in which year the Council was compelled bv law to raise a- loan for the mirpose of paying off its antecedent liability. At that time the Gas Account was in debit to the extent of £1498 and that amount was included in a loan of £30,000 known as the Antecedent Liability Loan. From the year 1923 since which time tlie Gas Account lias been in creditvarious sums each year have been transferred from the gasworks profits to the General Account. None of the special rates struck in respect of the loans above referred to are collected, the interest and sinking funds on the loans being paid from Gasworks revenue. In the case of the loan of £10,447 no rate was struck at all, the revenue from the undertaking being pledged as the security to the debenture holders. The accumulated profits of the Gasworks to the 31st March, 1930, after allowing for sinking funds on loans and transfers to the General Account amounted to £54,539. This amount is represented by tiie increased value of the plant since the commencement of the undertaking to the extent of £47,841, cash and stocks after allowing for sundry creditors £4,658, and sundry debtors £3,588, total £56,087, the difference between the £54,589 and £56,087 being the amount of the Antecedent Liability of £1498. Since they were taken over by the City they have been rebuilt twice. The works recently vacated were erected in 1935 by the then City Engineer, Mr John Henderson. They have, therefore, been in operation 25 years, compared with an average of_l7j- years of the two previous installations. In the natural order of tilings the old works were due for reconstruction in or about 1920, and this must actually have occurred but for the fact that there was no increase in the demand for gas during the years 1914-1918. From 1918, however, the demand increased regularly, and the designed maximum capacity of the 1 works, viz., 60 million feet per annum, was reached, and exceeded in 1922. The electrical proposals were then under consideration, and it was decided to withhold action at the gasworks until it was seen how they would he affected by the introduction of electricity. There fwas no reason to expect that the experience of Nelson should be any different "to that of other places under similar circumstances. Nor was it! The change over to electricity took with it the street lighting, a, large proportion of the house lighting, and practically all the shop lighting, in one day. There was a drop-in the output of gas of 14 million feet in the first year, and a further million in the second year, when the corner was turned, and the demand was on the up grade as sharply as ever.

Assessing the output at so many million feet per annum, does not convey a proper idea of the working of the plant. It. is the peak load that has lo be considered, and this occurs during the winter months, and is greatly affected with weather conditions. During May, June, July and August, over 7 million feet per month is common, whereas in the summer, the output may fall as low as 4 million feet.