| 27 “This is a significant new chapter in the history of New Zealand’s smelter....” T T Richard Loader Secure energy supply gives certainty Meridian Energy, Contact Energy and Mercury have concluded deals to provide price certainty for the Tiwai aluminium smelter. Southland: Rio Tinto REGIONAL DEVELOPMENT The aluminium smelter at Tiwai in Southland has secured energy supply from three generators until at least 2044, giving certainty to employees and the local community, and supporting New Zealand’s contribution to a low carbon future. Meridian Energy, Contact Energy and Mercury have concluded deals to provide price certainty for the smelter with the 572 Megawatts (MW) it needs to keep producing high purity aluminium for global export and domestic supply. “With these agreements concluded, the uncertainty for our hard-working team members and Southland is now over, and we can get on with producing the aluminium New Zealand and the world needs for its energy transition,” said NZAS Chief Executive Chris Blenkiron. “Today’s announcement marked the end of complex negotiations spanning over eighteen months. It has been a long process to get to today’s announcement, but worth the effort to secure a long-term future for New Zealand’s smelter and the many benefits associated with this. “We have been deliberate and taken our time, to ensure we see a new, long term and sustainable future for the smelter, and give that certainty to our employees, Southland, and New Zealand.” The twenty-year power arrangements through three energy generators, replaces the single contract with Meridian Energy. Separate contracts with Meridian and Contact will enable up to 185MW of dry year demand response to be made available to the national grid, which is the approximate equivalent of the energy supply needed to power nearly a quarter of a million households. “As a very large user of electricity, NZAS recognises the impact we have on the demand for electricity in New Zealand,” Mr Blenkiron says. “Making up to a third of our supply available to help New Zealand is something we’re happy to do to make sure that we play our part in the wider energy sector and help to keep the lights on. “Added demand response capacity will be invaluable as New Zealand’s energy demand, and climate change, increase demand on the national grid. “As well as the demand response capacity, today’s electricity agreements will also help progress the potential development of new renewable wind projects, providing a further boost to the security of electricity supply for New Zealand.” Mr Blenkiron said Tiwai is now firmly New Zealand’s largest battery. “When our demand response is called on, it effectively means New Zealand will have to burn less coal at Huntly, ultimately reducing New Zealand’s carbon emissions. “We believe this is one of the largest single site, long duration demand response agreements, in terms of percentage of national grid, anywhere in the world.” Implementation of the demand response will have an impact on the smelter’s production. The agreements will see NZAS compensated for this loss in production volume. The new agreement also ensures continuance of Tiwai’s environmental remediation programme. Mr Blenkiron said the negotiations had been carried out in a spirit of openness, with all parties focused on the sustainable future of one of the country’s largest export earners, along with the smelter’s ability to act as a battery for the New Zealand energy system. “This is a significant new chapter in the history of New Zealand’s smelter, and for Murihiku/Southland and I want to thank everyone, from NZAS, Rio Tinto, our energy partners, Ngāi Tahu, the Southland community and our employees, for getting us here today.” Employing a team of 130 staff across a diverse range of roles, Fulton Hogan Southland operates out of Invercargill, looking after the broader Southland region, as well as Gore district. The business also maintains a team in Stewart Island undertaking road maintenance activities for the Southland District Council as part of a wider roading contract. “Our core customer sector is predominantly local authorities, including Southland District Council, Invercargill City Council and Gore District Council,” says Regional Manager Paul Jamison. “We also work for New Zealand Transport Agency Waka Kotahi, Rio Tinto at Tiwai Smelter (NZAS) and Invercargill Airport. Road corridor maintenance along with asphalt and chip seal resurfacing is a core business activity for us, as is three waters renewals and capital projects for local authorities. We’re currently supporting our national construction team with a significant flood mitigation pump station.” Fulton Hogan Southland has enjoyed a strong working relationship with Rio Tinto for several decades, primarily supporting them with the maintenance and renewal of their civil infrastructure at Tiwai Point. For the last six months Fulton Hogan have had a full time team of about six staff based on site every day of the week, undertaking a wide range of projects. Keeping Tiwai Point tip-top “They are a client of national significance and we certainly prioritise their work requirements,” says Paul. “We have a contract with Rio Tinto for the next three years at least, undertaking predominantly concrete repairs to the underside of their wharf to increase its longevity. The wharf is a critical part of the business, but it is exposed to the harsh environment which includes the weather and sea salt, so it deteriorates much quicker than if it was in a less harsh environment.” Other recent projects include the completion of a programme of cleaning and remediation of Rio Tinto’s storm water network, and the construction of two new buildings, one of which is tilt slab, and the other a masonry block building. “Rio Tinto also has some extremely heaving traffic using their roads and we have completed quite extensive road maintenance, both gravel and hard surface. Ancillary work includes road markings and traffic movement signs.” Paul says one of the things that underpins the strength of the relationship is Rio Tinto’s recognition of the value Fulton Hogan brings to projects, both from quality, and health and safety perspective. “The two organisations are very much aligned in the health and safety space, and its importance, as well as the benefit of quality workmanship.”
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