Objective 5: Sustainable energy technologies and innovation
Widespread uptake of affordable new technologies is required to achieve the Strategy's goals. The Strategy calls for a significant effort to focus support for innovation in energy systems, playing to New Zealand's natural strengths and addressing our unique situation.
This section reports on chapter 11 of the Strategy.
2.5.1 Activity
Government funding support for energy research has been significantly increased in the past year, an assessment of New Zealand's natural resources and technology pathways has been completed, and coordination and linkages between researchers, industry and government is improving to support energy innovation. The highlights are:
The Marine Energy Deployment Fund was established to allocate $8 million over four years towards the deployment of marine electricity generation devices in New Zealand. Generating electricity from tidal or wave power is in an experimental stage worldwide and New Zealand has a promising resource of wave energy. In May 2008 EECA, the fund administrator, awarded Crest Energy $1.85m to assist the trial of devices in Kaipara Harbour (subject to Crest obtaining resource consents).
The Low Carbon Energy Technologies Fund was established, initially with $12 million over three years to support new low carbon energy technologies. In the May 2008 Budget the government committed to continuing this fund at the same level beyond three years. In July 2008, the Foundation for Research, Science and Technology (FRST) awarded Auckland-based company Lanzatech $12 million over three years to develop a second-generation 'low-carbon petrol' fuel from industrial flue gas waste that could be blended with petrol to reduce petrol use. FRST also awarded a NIWA/Solray partnership $2.5m over three years to research a process developing biofuel from algae. This fund has been fully allocated for the next three years.
Energy research funding was boosted by $32.5m over four years in the May 2008 Budget. This is added to the existing targeted energy research funding of $18m per annum. The new funding will support research into low emissions and renewable energy, deep geothermal energy and to support renewable energy projects that are at the piloting (deployment) stage.
The EnergyScape project completed an assessment of the range of New Zealand's natural energy resources and a framework, or model, for evaluating alternative energy scenarios for developing the resources. New Zealand's bioenergy resource potential and the potential role of hydrogen were explored in depth. EnergyScape was a multi-researcher project funded by FRST in 2007. The work is published at New Zealand's EnergyScape [link to National Institute of Water & Atmospheric Research (NIWA) Website].
The National Energy Research Institute (NERI) is improving the coordination between energy researchers and raising the profile of energy research in New Zealand. It organised two conferences to link energy researchers with policymakers, reviewed tertiary energy education programmes, developed an energy resource for schools, established a web-based energy researcher database with more than 100 researchers listed (available at: National Energy Research Institute (NERI) website), and has brokered links between companies and energy researchers for several projects with commercial potential. NERI formally started on 1 July 2007 with government funding. Its members include all New Zealand's universities and most crown research institutes undertaking energy research.
Example of funding award:
Research into the potential for low temperature geothermal energy
In June 2008, FRST awarded GNS Science $2.6 million over three years to find ways to increase the use of low temperature geothermal energy in New Zealand. Researchers from the University of Auckland and Coal Research Ltd will also be involved.
The project is to create a nationwide inventory of energy sources of less than 150OC. The researchers will study the heat energy transfer characteristics of the ground at a number of places in New Zealand, analyse socioeconomic factors and energy and tax policies that might influence the uptake of this energy type, and address technical and scientific areas that will need development to enable the growth of this type of energy.
Low temperature geothermal resources are widespread and there is significant potential to increase their use, providing long-term energy and heat supply with low carbon emissions. The sources include springs and borehole fluid discharges, shallow aquifers, water and steam discharges from thermal power plants, water associated with oil and gas wells, and flooded underground mines.
2.5.2 Indicators
The level of funding for energy research committed to by the government is one indicator of the level of government's commitment to energy research and development.
FRST funding for energy research is shown in Graph 7. 'Other' includes funding for distributed generation, wind, network, climate change impacts and Maori resources. The 2009/10 geothermal figure includes new funding for high temperature geothermal research, which has yet to be invested but will be by 1 January 2009. The biofuels funding includes the Low Carbon Energy Technologies Fund (LCET) and the Energy TRST (Transformational Research and Technology) which is focussed on ligno-cellulosic conversion of biomass.
In addition to the FRST funds shown in Graph 7 are the funds committed to the Marine Energy Deployment fund, administered by EECA, and Technology NZ investments with industry.
Graph 7: Energy Research, Science and Technology Investment42
→ Full size version of Graph 7 [17 kB JPG]
FRST reports that government investment in renewable energy research and development grew by $3.375m in the 2007 budget for the 2007/08 year (over the 2006/07 year) and by a further $8.437m in the 2008 budget. Funding increased particularly for geothermal and biofuels with more modest growth for marine and solar PV.
FRST also reports there was increased industry investment in research programmes in 2006 and 2007, most notably in geothermal and in carbon capture and storage (CCS), which also includes government involvement.
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