Ministry backs coal-powered power station

A coal-fired Marsden B Power Station would give the country's electricity supply added security, the Ministry of Economic Development says.

The ministry yesterday told an independent commission -- hearing resource consent applications to refire the station -- that as long as local environmental impacts could be avoided, remedied or mitigated, it supported the plan.

Mighty River Power has applied to both the Whangarei District Council and Northland Regional Council for 11 consents to convert the unused oil-fired Marsden B power station at Ruakaka to a coal-fired station.

The manager of the Ministry of Economic Development's energy and environmental policy group, Stuart Calman, said the application contributed to the national energy objective of enhanced security of supply.

"The ministry is not in a position to judge whether the local environmental impacts can be appropriately avoided, remedied or mitigated," Mr Calman said.

He said electricity demand in New Zealand was expected to grow at up to 1.8 per cent every year until 2025, and economic growth was not sustainable if it came at the expense of significant long-term environmental damage.

Mr Calman said the commissioners could not consider the effect of the proposal on global warming, as that had been addressed by central government by way of a carbon tax on industries that produce greenhouse gas emissions.

"Marsden B will be subjected to carbon taxes if it goes ahead," Mr Calman said.

He said Marsden B would generate about 2200 gigawatt hours of power a year -- about five per cent of the country's electricity demand.

"The Marsden B power station is situated in an ideal location to improve the security of New Zealand's electricity system," he said. "New generation north of Auckland implies reduced pressure on the transmission lines south of Auckland which are nearing capacity and also reduced pressure on the transmission lines running from Auckland to the North Shore."

Sue Rhodes, representing Wiri Oils Services Ltd (WOSL), said the company had concerns about a stockpile of coal being just across the road from its oil storage facility at Marsden Point.

Ms Rhodes said as coal was not deemed a hazardous substance by the Environmental Risk Management Authority, Mighty River had not done an assessment of the effects of stockpiling the coal. Mighty River plans to store more than 35,000 tonnes of coal on land owned by North Port.

Far North, Whangarei and Kaipara Districts Federated Farmers president Denis Anderson said the station was important in ensuring the security of electricity supplies to farmers.

Environmental group Greenpeace was due to present its submission to the commission today.

- NORTHERN ADVOCATE (WHANGAREI)