The Green Party has outlined a radical policy that includes a ban on new coal mines, with a view to phasing out coal production in NZ apart from a small amount for specialist non-energy uses. Co-Leader Jeanette Fitzsimons has announced a six-point plan to effectively shut down NZ’s coal industry, which includes converting Solid Energy into a renewable energy company and closing the Huntly Power Station. Thankfully for Labour and National, Fitzsimons says the Greens won’t make the coal mining policy a bottom-line issue in any post-election coalition talks. But she has accused both parties of “greenwash and spin” over coal, noting the Govt has banned new coal-fired power stations in NZ but is happy to export coal to be burned overseas. Fitzsimons argues there is sufficient coal in existing mines, which the Greens are not proposing should shut down, to keep market contracts supplied and the workforce employed. But she believes a Govt that aims to be carbon neutral can’t allow its own State Owned Enterprise to carry on expanding coal production, either for domestic consumption or for export.

The only exemptions would be for specialty coals in small quantities for uses such as carbon fibre and activated carbon, and for enough local coal of a sufficient quality to keep NZ Steel supplied. The Greens will also try amending the Emissions Trading Bill to include coal seam methane in the climate change obligations of coal mining companies. Fitzsimons also dismisses the idea of “clean coal” as “a highly misleading slogan” of the coal industry. While carbon capture and burial may be possible one day, she sees this as “a hugely expensive red herring” which is diverting funds away from renewable energy research.

Fitzsimons believes Solid Energy should cease investigations into converting Southland lignite to liquid fuels and instead focus on becoming a renewable energy company, building especially on its expertise in waste wood. She notes Solid Energy has recently invested in a wood pellet and wood stove business, as well as a solar water heating business, and is also producing bio-diesel from rape seed. About 5m t of coal is mined each year in NZ, most of it by Solid Energy. Almost three-quarters is high-quality coking coal, which goes to Japan, India and other countries for steel making. Huntly burns 44% of NZ’s coal. About half is imported from Indonesia and the rest comes from the Waikato coal fields. NZ Steel uses about 31% of domestic coal, and Fonterra uses it at several dairy factories to dry milk, as well as other big industries such as cement and aluminium.

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