An update briefing meeting to the whanau at Omaio marae where the winning three student engineering design teams presented their ideas and plans to create a flagship maori community owned renewable energy enterprise.
Stunning ideas from the students with lots of questions and feedback from the whanau.
The next steps are now to assemble an expert engineering review panel to consolidate all the best ideas and develop a final business case with detailed cost/benefit analysis that will be socialised with the investment community towards making the project real by the end of 2014.
An initiative towards a flagship Maori community owned renewable energy enterprise.
1. Flagship Marae-owned Renewable
Energy Project
Karamea Insley
Chairman and Project Manager
September, 2013
Project Update
- 2013 (Engineer) Odyssey Design Challenge
- Our partners
- Key next steps
Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks
Private & Confidential
2. Program
• 12:00 p.m. - Introduction
• 12:30 p.m. – NZ 2013 Odyssey Design Challenge
– Student Engineer Presentations (times 4)
• Questions and answers
• CEO (Engineers Without Borders)
• 1:30 p.m. – MP (And, Co-leader of Maori Party) Te Ururoa Flavell
• 1:50 p.m. - Wrap up and next steps
• 2:00 p.m. - kai
Private & Confidential
3. • Hon. Tariana Turia
• Dr. Apirana Mahuika
• Sir Wira Gardiner
• Mayor John Forbes
• Eric Pyle – CEO NZ Wind Energy Association
• Dr. Patrick Strange – CEO Transpower
• Brent Donaldson – Hancock Forest Management
• Cnr Manu Caddie (Gisborne)
• Waimate Ngamoki
• Moana Boyd
• William Ngamoki
Apologies
Private & Confidential
4. Project Member Skills & expertise
Land restoration Karamea Insley (Chairman) Undergraduate & Masters Commerce Degrees
Carolyn Insley Diploma in Horticulture – Massey University
William Ngamoki Plantation and indigenous forestry
Renewable energy Karamea Insley (Project Manager)
Sarah Henry Kura kaupapa
Marcia Insley Bachelor of Laws & Diploma in Business
Moana Boyd Bachelor of Laws & Environmental Management
Tere Insley Bachelor of Architecture
Astrid Tawhai Hauora
Tatahi MacDonald Student at Auckland University
World-class Project team
Private & Confidential
8. International Ambassador
Ms. Ana Ngamoki
Discussing why Kaitiakitanga
works
Group discussion with Japanese
participants
Making recommendations to
the Cabinet office of Japan
“They see this project as an ideal model of collaboration that they would like to follow. It is
humbling knowing that our whanau project is being seen as a leader in collaborative projects
for these countries”
Private & Confidential
9. FLAGSHIP RENEWABLE ENERGY
Guiding principles:
- Marae-owned
- Nuku, Rutaia, and Toihau
- Project leadership stays with the marae
- Never put our land at risk
Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks
Private & Confidential
10. • Hapu hui towards the end of 2012 to discuss our:
• Issues
• Challenges
• Goals and
• Strategies (DRAFT)
• $10 million application to EBOP $40 million new
infrastructure fund
• Was DECLINED
• We carried on ….
• The Hikurangi Foundation
• Engineers Without Borders (2013 Odyssey Design Challenge)
How did we get here?
Private & Confidential
11. • Cheap power for the whanau through an energy company
owned by the hapu +
• Energy security and a new revenue stream for the hapu +
• New and real jobs +
• Model project management approaches + and
• Share knowledge and outcomes with other TWAA marae
(and nationally an estimated 1,300 marae) and Iwi
Our goals for the project
Private & Confidential
12. Project Plan
2013
Qtr. 2 Qtr. 3 Qtr. 4
2014
Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4
Odyssey Challenge
Judging
Investor search
Contracting and engagement
Consenting
Construction
Commissioning
Aunties flick the switch
Private & Confidential
13. 2013 ODYSSEY DESIGN CHALLENGE
Engineers Without Borders
- 9 teams (of 3 or 4)
- May visit to Omaio
- Auckland and Canterbury Universities
- Concept plan and 20 Page business-case
- Expert Judging Panel in Auckland
Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks
Private & Confidential
16. THE TOP 2013 ODYSSEY TEAMS
- Te Hauhake Pungao (Auckland)
- UCAN (Canterbury)
- Ellen Palmer (Canterbury)
Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks
Private & Confidential
17. Marae 1 Marae 2 Marae 3
Charitable Trust
Holding Company
Renewable
Energy
Land-based
Aquaculture
Other new
enterprise
DRAFT structural framework
Maori Land
block 1
Maori Land
block 2
Maori Land
block 3
Dividends
Mainstream
corporate
law
Mainstream
corporate
law
TTWMLA
TTWMLA
TTWMLA
TTWMLA
Note: TTWMLA – Te Ture Whenua Maori Land Act
Private & Confidential
18. Land-based Aquaculture
Project
New Zealand’s fastest
growing seafood sector
• Alignment with Ngati Porou Seafoods
Group project
• Aquaculture makes up approximately
20% of NZ’s total fisheries production
(by value) and 15% of NZ’s total seafood
exports (by value)
• About 66% of New Zealand’s
aquaculture production is exported
• Land based Finfish aquaculture is our
preference as a means of Supply for
fresh fish exports and value added
products which includes by-products
• Head of NPSG (Mark Ngata) will come
and meet with us in early 2014 to
update on status of project
• We are hosting the leading European
Food Innovation experts in Gisborne in
November this year
• Also leading large scale Iwi-owned
Geothermal Greenhouse development
project in Kawerau
Private & Confidential
19. Partners and/or Contributors
(or other engaged Parties)
• The Hikurangi Foundation
– Tyndall Foundation
– Todd Foundations
– Banks
• Engineers Without Borders
– Auckland University
– Auckland Institute of Technology
– Canterbury University
– AECOM international
– Sinclair, Knight Merz
• Institute of Professional Engineers of
New Zealand
• Scion Forest Research
• Environment Bay of Plenty
• Opotiki District Council
• Chapman Tripp
• Lead Government Energy advisor
• Transpower
• New Zealand Wind Energy
Association
• New Zealand Bio-energy Association
• Hancock Forest Management
• Motu Research
• Maori Land Court
• Mangaroa Ohotu & Te Karaka Land
Blocks
• Other marae
• Other Iwi
No help from Te Puni Kokiri or any other Government department!
Private & Confidential
20. Short and medium term next steps
Immediate next steps Project plan to 2014
• Peer-Review of Odyssey
projects
• Complete business-case
– Late October/early November
2013
– Kill/go decision
• Finalize legal structures
• Investor search and
commitment
• Landowner hui
• Implementation in early 2014
Private & Confidential
21. 1. A key challenge will be:
– Effective contracting project into the NZ energy market
(generators, wholesalers, retailers, and lines companies)
– Getting certainty around future wholesale energy prices.
2. Capital investment (linkage to Whanau Ora)
– Estimate from preliminary Engineer analysis of between
$3.0 to $5.0 million over 1 to 3 years
– Final detailed business-case will be available late
October-early November 2013 confirming final numbers
3. Access to Government home insulation program
How can Government help?
Private & Confidential
22. • While we have had setbacks, our project is on-track with our
project plan; and
• We have the best technical (science, engineer, legal and
commercial) experts in New Zealand and the world helping
us; and
• It is our whanau and hapu who own and lead the kaupapa
(no-one else); and
• There has been no cost to the marae; and
• We have not (and will not) put our lands at risk.
Summary
Private & Confidential
25. Our Solution
Two sphere hybrid
solution:
1. Renewable generation
sphere
2. Home improvements
and generation sphere
26. Design Matrix
Design Criteria
Solar PV
Array Farm
Domestic
Solar
Hybrid
Thermal/P
V panels
Wind
Turbin
es
Biomass
(wood)
Gasification
Combined
Heat and
Power Plant
Domesti
c
Wastewa
ter
Biogas
Micro
Hydro
Domestic
improvements
(insulation, heat
exchangers)
Vision and values
Cost to implement
Cost to operate
Economic benefit
Payback time
Feasibility
Ease of consent N/A
Sustainability
Energy return on energy
investment (EROEI)
3:1-10:1 5-8 18:1 7 7 40-200 N/A
Scalability N/A N/A
Repeatability
Predictable generation N/A
Criteria fully meet/ Great!
Criteria mostly meet/ OK
Criteria not meet/ bad
No geothermal resource
Marine energy technology not sufficiently mature
27. Home Sphere
Decrease energy use.
Improve energy
education.
Generate own
electricity
Generate own gas.
28. Home Energy
Efficiency
Reduce energy usage in
each home.
• Free Eastern Bay of Plenty Energy Trust Home
Assessment
• Improved home = improved health
• New homes design and built to Green Star or
similar standards
29. Heat
Exchangers
40mm and 50mm Shower
Water Heat Recovery Units:
• Complies with NZ and
Australian Plumbing
Standards
• 5 year guarantee
permanent fixture
means savings with
every shower
• more pressure at the
shower rose in
rural/low pressure
systems
• $446.50/ unit
30. Home Energy
Generation
Home biogas to
produce gas from
wastewater.
Replaces septic tanks.
Cost estimated to be $2000-$5000 per tank .
32. Hybrid Solar
Thermal PV
Panels
• Generate electricity
and hot water.
• Roof top mounted
• Battery banks store
electricity
• 2.5kW system costs approximately $8000 plus
$1500/battery
• Saves about $650/year = return approximately 8%
34. Solar PV Arrays
Solar Farms:
• Tokelau
• Westmill Solar
Cooperative in
England Area
(m2)
Installe
d Cost
kW
p
Output
kWh
annual
70 $41,00
0
10 15000
100 $81,60
0
20 30,000
180 $102,0
00
27 37,500
35. Solar PV Arrays
Generate electricity in a
scalable manner
Design Criteria Solar PV Array Farm (Kyocera)
Vision and values Met
Cost to implement
$81,600/ 100m2/ hapu ($248000 total) for
fixed system
Cost to operate Low
Economic benefit
$506,000/annum if sold @ 7c/kWh
Meet approx. 90% of local demand
Feasibility High
Ease of consent Will meet RMA requirements
Sustainability meets ISO 14001
Energy return on energy
investment
3:1-10:1
Scalability Suitable for all hapu locations
Repeatability Suitable for all other hapus in Iwi.
Predictable generation
Daily generation, variable electricity
output.
Output Characteristics
30,000 kWh/year
9.6% degradation after 25 years (vs. 20%
industry)
Manufacture
World wide warranty
Vertical integrated manufacturing for
quality control
Long term sequential testing
37. Wind Turbines
Generate electricity in a
scalable manner
Design Criteria Alize Wind Turbine
Vision and values Met
Cost to implement
$58,000/turbine + installation approx.
$12,000
Cost to operate Low
Economic benefit $140,000/turbine/annum if sold @ 7c/kWh
Feasibility High
Ease of consent
Meets RMA requirements, depends on
community support
Sustainability met
Energy return on energy
investment
3:1-10:1
Scalability Suitable for all hapu locations
Repeatability Suitable for all other hapus in Iwi.
Predictable generation Variable, unpredictable output
Physical Characteristics
7m diameter rotor
Silent Low cut-in wind speed
Direct drive
Automatic furling safety system
Output Characteristics
20,000 kWh/turbine/year @ 5m/s
Max output 10kW
Manufacture
Guarantee: 5 years minimum
Design lifetime: 25 years
41. Biomass
Design Criteria
250 kW
Gasifier Combined
Heat and Power Plant
1.5 MW
Gasifier Combined Heat
and Power Plant
Vision and values Met
Cost to implement $0.8 million $5 million
Cost to operate $0.1 million $0.5 million
Economic benefit
Significant (>$500, 000), depends on use of
heat and cost of slash to gate
Feasibility High
Ease of consent Will meet RMA
Energy return on energy
investment
7:1
Scalability Scalable only between two options
Repeatability
Dependent on available biomass, only 1 plant
for Iwi recommended
Predictable generation
Yes , provide dependable generation on
demand
Physical Characteristics 100m2 200m2
Output Characteristics 250 kWe and 100kWth 1.5 MWe and 3MWth
Manufacture Design life time: 25 years
Converting forestry
waste into electricity
and heat using
gasification
43. Heat Energy
Uses
Fits with desire for
aquaculture industry
Malaysian prawns are
grown at optimal rates in
heated pools.
44. Selling
Electricity to
Network
RETAILER SYSTEM SIZE
EXPORT POWER
RATE
Contact Up to 10kW
17.285¢ / kWh, +
GST
Contact
More than
10kW
7.0¢ / kWh, + GST
Mercury
Energy
-
3.5¢ / kWh
(Auckland only)
Trust Power Up to 10kW 7.0¢ / kWh, + GST
Genesis -
4 - 7¢ / kWh
(North Island Only)
Meridian Up to 10kW
25c for the
first 5kWh
exported per day
10c for the
remaining exported
kWh per day
+ GST
• Set up as distributed
generator?
• Set up as retailer?
• Set up micro grid?
• Political decisions
46. Implementation
2014 – Aunties flick
switch on Solar PV Farm
2015 – Wind turbines
online; Home energy
generation and
improvements
2016 – Biomass plant
online
Bio Gasification
plant in Te Kaha in
close proximity to
sub station.
Wind turbines and
PV arrays co-
located to share
grid connection
infrastructure,
close to existing
transformers
47. Acknowledgements Thanks to Stuart MacWilliam, Renewable Solutions Ltd
Thanks to you for this opportunity and
your attention!
Partnership strategy
We have no money;
Acknowledge the sponsorship of Environment Bay of Plenty, and Mangaroa Ohotu & Te Karaka Land blocks
Estimate the cost to get us to the point we are at now would have been between $200,000 to $300,000.
Introduce myself
Great to be back
Acknowledge important people
Jay’s message
Ellen:
Our solution is derived from this design matrix
Energy options are along the top
Design criteria we evaluated is down the side
Some options are better than others
We have integrated many of the feasible options into our solution
Marine too exspensive
No geothermal
Hydro not scalable
Include marea and schools
Increase home values
Change at 4:30
Reduce energy poverty
Payback time depends on household but about 1 year
Anerobic digestion breaks down greenwaste and wastewater into solids and gas. The gas contains a large amount of methane so can be used for cooking and heating.
New Zealand designed and built. Waste Action from Nelson but haven’t heard back from them re cost
Cost depends on installation
Change at 4:30
Reduce energy poverty
Increase resilience
Mitigate power cuts and inaccesability
Face north
Tilited to latitude anlge to max elec produced
Battery bank optional but good if power cut
“According to the association, a 2.5 kilowatt solar pv system costs about $8000 to install but at current electricity prices saves an average $648 a year, generating a return of just over 8 per cent.
Larger systems could return about 9 per cent, Winitana said. “
Change at 4:30
Reduce energy poverty
Increase resilience
Mitigate power cuts and inaccesability
Face north
Tilited to latitude anlge to max elec produced
Battery bank optional but good if power cut
“According to the association, a 2.5 kilowatt solar pv system costs about $8000 to install but at current electricity prices saves an average $648 a year, generating a return of just over 8 per cent.
Larger systems could return about 9 per cent, Winitana said. “
Biomass + wind + solar
Complement each other
Limited amount of electricity that network can accept.
Generation needs to be near to transformers
About 3MW safely but in the hands of Horizon
Energy company only has to accept upto 10kw of power input
Many of the remote lines that were installed under government subsidises during the 1940’s-1980’s
are nearing the end of their design life. The replacement of these lines with a stand-alone power
systems may, in some cases, be a more economical means of providing electricity than replacement
and ongoing maintenance of these remote lines (Empower Consultants, 2008). Presently the
maintenance of these lines is effectively subsidised by consumers in areas where electricity
distribution is financially viable.
Tokelau 2012 the first country powered by solar. 1 MW Implementation by NZ company PowerSmar
Westmill Solar Co-operative owns and operates the first community owned solar farm in the UK - hopefully of many to follow - and we believe we are the largest community owned solar project in the world.
The solar farm is rated at 5MW, located on the Oxfordshire/Wiltshire border, spread across 30 acres, read more in the Solar Park section. We have over 1600 members who share a say in how the cooperative is run and benefit from a share of the project revenues.
Solar Photovoltaic panels are a scable way of generating electricity to sell to the network
All hapus have good solar resource
Each hapu own ‘farm’ of 100m2 of panels gives a balanced generation across a connection point into the lines distribution network. Helps if the network distribution system is not good by having the generation closer to its usage point.
Meet 90% of local demand over a year
Ground mounted sun tracking Kyocera panels for optimum efficency
Change at 1:30
Deger available from NZ Solar Farms in Nelson
Photovoltaic modules that follow the sun’s path capture a higher amount of energy and therefore produce decidedly more power than modules in a fixed installation.
The tracking system moves to the ideal position from sunrise to sunset and produces more energy than fixed systems.The advantages are clear:
an average of 45 percent higher energy yield compared to fixed solar modules
less module space required
constant energy production - also in the morning and evening, when the demand for energy is at its highest
Moderate, turbulent wind resource
Large turbines not suitable
Small 10 kW turbines with 7m diameter rotors
Generate electricity to sell to grid
Community discussion about placement and numbers but co-locate with PV farm to distribute generation and share infrastrucure
Change at 3:40
“Both gasification and incineration are capable of converting hydrocarbon-based hazardous materials to simple, nonhazardous byproducts.
However, the conversion mechanisms and the nature of the byproducts differ considerably, and these factors should justify the separate treatment of these two technologies in the context of environmental protection and economics.”
U.S. Department of Energy, National Energy Technology Laboratory (NETL)
Moderate, turbulent wind resource
Large turbines not suitable
Small 10 kW turbines with 7m diameter rotors
Generate electricity to sell to grid
Community discussion about placement and numbers but co-locate with PV farm to distribute generation and share infrastrucure
Sky FarmTM 50 kW Turbine
Change at 3:40
“Both gasification and incineration are capable of converting hydrocarbon-based hazardous materials to simple, nonhazardous byproducts.
However, the conversion mechanisms and the nature of the byproducts differ considerably, and these factors should justify the separate treatment of these two technologies in the context of environmental protection and economics.”
U.S. Department of Energy, National Energy Technology Laboratory (NETL)
http://ec.europa.eu/research/energy/nn/nn_rt/nn_rt_bm/article_1112_en.htm – Not cost effective to transport more than 80 km before it is converted to fuel. The economic life of biomass plants is assumed to be 20 to 25 years. Minor equipment refurbishment and replacement is included in O&M costs.Http://www.nrel.gov/analysis/tech_lcoe.html - LCOE calculated using this
Slash is a hazard and has to be removed from forest.
Also fire and physical hazard in piles
Change at 3:40
“Both gasification and incineration are capable of converting hydrocarbon-based hazardous materials to simple, nonhazardous byproducts.
However, the conversion mechanisms and the nature of the byproducts differ considerably, and these factors should justify the separate treatment of these two technologies in the context of environmental protection and economics.”
U.S. Department of Energy, National Energy Technology Laboratory (NETL)
Grow seafood using pools heated by heat energy from CHP plant
Creates tourism opportunity – fishing and café
Simplified versions of smart networks, with generation and storage capacity, could be used at the end
of long grid lines where voltage support is needed. The local inverter would supply peak demand at
the end of the line, reducing the capacity requirements on the line. In some cases the line may become
obsolete altogether. This may be used as a transition strategy in remote areas, if the economics of
maintaining grid lines are poor. It would allow customers to gain confidence in the new technology
before connection to the grid is severed and also allows staged capital expenditure.
Concurrent
Community discussion about wind locations