Reveal coal details, Genesis told

By CHRIS DANIELS energy writer

Energy Minister Pete Hodgson has asked Genesis Energy to come clean about whether it has enough coal to see it through the winter.

Many in the energy sector say the state-owned power company has been caught short by a cut in the amount of natural gas it can take from the diminishing Maui gasfield, leaving it without enough coal to fuel the Huntly power station this winter should southern hydro lakes again run low.

Chief executive Murray Jackson yesterday announced details of Genesis' plans to import half a million tonnes of coal from Australia and Indonesia. It will be shipped to Tauranga and sent by rail to Huntly, which sits on top of a coalfield.

Jackson said the Huntly station was already using coal as fast as local mines could produce it. He said the first delivery of overseas coal, transported in empty logging ships returning from Malaysia, would arrive in July.

The recent spike in wholesale power prices has been attributed partially to this uncertainty over Huntly.

The station, New Zealand's largest thermal electricity generator, can use natural gas, coal, or a combination of the two.

It was built at Huntly because of the coal supplies beneath the district.

Hodgson, who has been given information about coal supplies but has so far been sworn to secrecy by Genesis, has asked the company to start publicly revealing details of its coal stockpile.

A spokesman for the minister said he had "reached the view that it is clear the market does need to know more about what the thermal fuel situation is".

"He has certainly made it clear to Genesis and Solid Energy [the state's coal firm] that he thinks there does need to be more information available about what the situation is, so that the rest of the market can make good decisions. We expect there will be some progress on that."

All other generators know how much rain has fallen and how full or empty the Southern hydro lakes are. None, however, knows whether the Huntly station has enough coal to see it through this winter.

Genesis has been in discussions with Tranz Rail about ways to get coal to Huntly.