New Zealand Aluminum Smelter chief executive Chris Blenkiron said, in a Southland Express column this week, NZAS had gone to the market last year seeking a supply of additional power to restart the fourth potline, which shut in 2020 during the pandemic.
The restarting of the potline would require 50MW of power and was not part of the deal reached last year, which locked in power supply for the next 20 years. Meridian Energy, Contact Energy and Mercury NZ came to an agreement with NZAS which guaranteed power to the smelter until 2044.
Mr Blenkiron said the response from the energy market about the potential of reopening of its fourth potline had been encouraging.
Mr Blenkiron said the smelter was seeking interest from generators about supplying more than 200MW, well above the 50MW needed for the fourth potline.
“We’re now seeking businesses interested in generating more than 200MW – much more than what we actually need, but the sort of commitment that is needed for most developers to be able to commit to building new renewable generation.”
He said if plans went ahead, it would create 25 new jobs and generate about $100million in additional annual export revenue.
“The response has been encouraging, indicating strong interest in supporting new electricity generation, so I am excited to see how this develops.”
Mr Blenkiron said this would not be a quick process, but an NZAS spokesman said yesterday that request for proposals closed today.
The smelter uses about 13% of the country’s electricity supply at present.
Where that 200MW power will come from is unknown, but Mercury Energy is developing the second stage of its Kaiwera Downs wind farm near Mataura. When completed, the wind farm will produce 198MW.
Manawa Energy and Pioneer Energy are looking to develop the Kaihiku wind farm. It is planned for land about 7km from Clinton and 12km from Balclutha.
It could potentially produce 300MW, enough power for 135,000 homes.
Contact Energy is developing a 55-turbine wind farm at Slopedown near Wyndham, which will also produce up to 300MW.
The government also made a change this week allowing more generators into the market.
Restrictions on electricity lines companies investing in generation would be eased to help strengthen the energy network, Energy Minister Simon Watts and Associate Energy Minister Shane Jones said on Wednesday.
The action, which is part of the coalition agreement between New Zealand First and National, would give distribution businesses the confidence they needed to invest in generation, helping to increase regional resilience and the national energy supply, Mr Jones said.
