Firms fight over hydropower water use

A battle is set to begin between Solid Energy and a private developer over the building of a new hydropower scheme using water from Stockton opencast mine, north of Westport.

Solid Energy (SE) plans to appeal against Hydro Development Limited's (HDL) proposed Stockton Plateau hydro plan and seek consent to use the water for its own scheme.

"We believe that our scheme is a better fit with our coal mining plans and environmental commitments at Stockton," SE chief operating officer Barry Bragg said yesterday.

"At this stage we have no information that says HDL will be able to meet our expectations, or if they do, whether they have a viable project that is the best for the Stockton plateau."

HDL won official resource consent to build its scheme, allowing the company to harness tributaries of the Ngakawau River.

The scheme would use polluted water from the coal mines on the Stockton Plateau and channel it to generate power before discarding it in an ocean outfall offshore. But SE is concerned HDL's scheme would interfere with future mining activities.

Mr Bragg said SE was willing to talk with HDL about a land access deal but any agreement would be subject to meeting all SE's expectations.

"We will appeal their consents to the Environment Court to protect our position. If, however, HDL can address our concerns, then I'd expect our appeal could be settled."

SE's proposed scheme would be $70 million cheaper than HDL's estimated construction price tag of $200 million. Mr Bragg said the market would decide which was the better project to proceed.

HDL consents manager Rebecca Inwood said the company was disappointed by SE's announcement, but it did not come as a surprise.

"They [SE] had indicated they would be taking a neutral stance but when the hearing proceeded, and they came along to speak to their submission, we knew at that stage there might be a significant chance they might appeal."

There had been a lot of information sharing at the beginning, Ms Inwood said.

"Obviously they [SE] have been able to use a lot of that information that we've developed along the way - to use for their own purposes.

"It's disappointing we can't be working closely together to try and resolve the issues."

- NZPA