Effect of Proposed Lignite Mining Projects on Green House Gas Emissions - Dr Kennedy Graham

Dr KENNEDY GRAHAM to the Minister of Energy and Resources: By how many tonnes would Solid Energy's proposed lignite projects in Southland increase New Zealand's gross greenhouse gas emissions in 2020?

Hon GERRY BROWNLEE (Minister of Energy and Resources) : I understand that this morning Solid Energy informed the Commerce Committee that depending on the scale of technology used, gross emissions could be 10 million to 20 million tonnes per annum. I also understand that Solid Energy has said on many occasions that taking full responsibility for greenhouse gas emissions is a key consideration in its lignite developments and it expects its lignite-based plants to achieve full carbon compliance.


Dr Kennedy Graham: If by achieving compliance the Minister is referring to carbon capture and storage, as indeed Solid Energy identified as one of the means this morning, can the Minister name one suitable reservoir to store carbon dioxide in the Southland lignite region?

Hon GERRY BROWNLEE: I am not able to give operational answers on behalf of Solid Energy, but I would say that we have introduced an emissions trading scheme that will enable carbon compliance.

Dr Kennedy Graham: I raise a point of order, Mr Speaker. I was not asking the Minister to speak on behalf of Solid Energy. I was asking the Minister whether he could name one reservoir that would engage in carbon capture and storage. I am asking him for his knowledge.

Mr SPEAKER: The Minister is answerable to this House only for what the Minister is responsible for. He is not answerable to this House for his knowledge about what various issues may be. The Minister referred to the matter as being an operational matter for Solid Energy. I cannot dispute that with the Minister.

Dr Kennedy Graham: The Minister and his Government are responsible for ensuring a net decrease in carbon emissions for this country. Knowing whether there is adequate carbon capture and storage in Southland does not fall solely within the operational responsibility of Solid Energy but within his ministerial portfolio.

Mr SPEAKER: I am sure if the Minister—[Interruption] Does the Minister wish to add to his answer?

Hon GERRY BROWNLEE: Well, it may help if I simply said that there is no proposal yet from Solid Energy to engage in a particular type of lignite recovery, and therefore no indication yet of how carbon emission may be mitigated.

Dr Kennedy Graham: Does the Minister agree with his colleagues Nick Smith and Tim Groser that to efficiently address climate change, fossil fuel subsidies should be phased out?

Hon GERRY BROWNLEE: Yes, and I am not aware that we do have fossil fuel subsidies in New Zealand.

Dr Kennedy Graham: Then what is his response to the Parliamentary Commissioner for the Environment's statement that under this Government's emissions trading scheme, companies such as Solid Energy are likely to receive subsidies of millions of dollars a year from New Zealand taxpayers to develop products from low-grade coal, that is to say lignite?

Hon GERRY BROWNLEE: I simply do not accept that that is the correct position.

Dr Kennedy Graham: I raise a point of order, Mr Speaker. Do I understand that to mean that he does not accept that that—

Mr SPEAKER: That is not a point of order. The Minister has answered the question. The member has the chance to ask further questions, but he cannot by way of a point of order give his interpretation of a Minister's answer. That is not what a point of order is all about, at all.

Dr Kennedy Graham: Sorry, Mr Speaker, I was just seeking clarification. Will the Minister consider extending Government support to renewable energy schemes in wind and solar so that we can meet our national energy needs while leaving the lignite deposits in the ground?

Hon GERRY BROWNLEE: I do not believe the two objectives are either complementary or opposed to one another. The lignite opportunities will reduce, if they come to fruition, significant imports of urea and will also make a significant difference to the availability of fuels in New Zealand.