BT Mining will supply domestic coal for Genesis Energy to power Huntly Power Station.
Photo: RNZ
Genesis Energy has struck a deal to increase the amount of domestic coal needed to power the Huntly Power Station.
The two-year deal with New Zealand mining company BT Mining to supply 240,000 tonnes of coal to the Huntly Power Station was designed to strengthen Huntly’s role in providing flexibility and security to the electricity market.
“This agreement secures a reliable local source of coal for Huntly Power Station, reducing our reliance on overseas shipments and protecting against global supply chain disruptions,” Genesis chief operating officer Tracey Hickman said.
“It’s about keeping the lights on during periods when renewable generation is low.”
Hickman said Huntly burned about 300,000-500,000 tonnes of coal in an average year, while gas declines, dry years and low wind could push the total to about 1 million tonnes.
The agreement would provide a greater supply of coal from a domestic source, with Indonesia currently a major supplier.
BT Mining said it supported balancing the importing of coal with what can be economically mined in New Zealand.
“This deal represents a boost for the local economy and shows the important role BT Mining can play in both maintaining energy security and supporting New Zealand’s commitment to transition to a lower emission future where possible,” BT Mining chief executive Richard Tacon said.
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