8 Rivers Clean Energy Project Raises $ 20 Million

Proponents of a clean energy plant claimed for Taranaki, which uses natural gas to produce electricity, hydrogen and fertilizers, broke their coverage after months of preparation to support a demand for loan of up to $ 20 million to the Provincial Growth Fund to verify feasibility.

"By utilizing proven technology, the Taranaki facility provides an end-to-end process that fully aligns with New Zealand's zero carbon goal by 2050 while addressing immediate and emerging needs." continued from the primary industry, "said Pouakai NZ in a statement. "The production process does not generate any greenhouse gas emissions in the atmosphere" because it injects carbon dioxide into depleted oil and gas fields.

Chaired by Brian Roche, former executive director of the New Zealand Post, Pouakai is 100% owned by 8 Rivers, an American company that operates a 50 megawatt gas plant using the new Allam Cycle process since mid-year. . The plant is both more efficient than existing gas-fired technology and claims to have solved the problem of carbon capture and storage at an affordable price.

The US $ 400 million benchmark plant results have attracted new investment in recent weeks from two leading US energy companies, Occidental Petroleum and Exelon, which are looking for low-carbon technologies. and non – nuclear to produce electricity in the future.

According to Mr. Pouakai, one of the key elements of the proposal is that it "will help support and accelerate a rapid decarbonization of New Zealand's energy production sector" and "will allow a faster penetration of renewables into the production mix while ensuring network stability and a dry year.New Zealand is getting closer to its goal of a fully decarbonized network by 2035. " has applied for support from the Provincial Growth Fund.

The government has set a target of zero net carbon emissions from the electricity sector by 2035 "in a normal hydrological year". This is increasing the need to produce from fossil fuels to ensure the security of electricity supply when the level of the hydroelectric lakes is low and the wind farms are not able to fully take over.

In a comment on the proposal sent to BusinessDesk, New Plymouth Mayor Neil Holdom said the 8 Rivers proposal "created an important dilemma for our coalition government".

"Allam Cycle technology works, it is competitive with current gas production and meets all criteria in terms of emissions and our national sovereignty," Holdom said.

"But that eliminates the ideological battles that are unfolding in Wellington, does the policy aim to get New Zealand to zero zero carbon by 2050, or does it aim to end it?" oil and gas industry in New Zealand? " he said, referring to the April government's decision to ban the granting of offshore oil and gas exploration permits.

"On a scientific basis, if the goal is to remove 60 million tonnes of carbon per year from New Zealand's emissions to reach net zero carbon by 2050, technologies such as the 8-river cycle "Allam should not be just acceptable, we should actively encourage their adoption," Holdom said.

A spokesman for Greenpeace said the environmental lobbyist is still considering the proposal, but has expressed skepticism about the economics of carbon capture and storage technology, which has been elusive to date.

Pouakai acknowledged that "the regulation of gas exploration in New Zealand is changing," but the project had begun "before the regulatory changes underway and these changes have not occurred. Impact on the decision to pursue it ".

New Zealand was an "ideal location" for technology, based on "a highly skilled workforce, a strong rule of law and a good availability of natural resources".

The project represented an opportunity for the Taranaki region to overcome its longstanding dependence on the oil and gas sector.

It would also produce 100 percent of the country's demand for urea, used as fertilizer in the agricultural sector, replacing "the highly carbon-intensive imported supply" and creating an excess supply for the country. export.

The plant would also produce hydrogen. Ministers recently expressed their enthusiasm for the development of "green hydrogen" as a transportation fuel for the trucking and, possibly, rail and marine transportation industries.

Polls conducted by BusinessDesk suggest considerable friction between the Minister of Regional Economic Development, Shane Jones, and his New Zealand party, as well as the Green Party and Labor Party ministers, who supported the ban on business. Oil and gas exploration and struggle for hydrogen to be produced from a process using natural gas as "green", despite the claims of Pouakai, the process will produce no carbon emissions.

– BusinessDesk