New Zealand to Clarify Conflict Between Offshore Wind and Seabed Mining
The government of New Zealand reports that it will be taking steps to encourage the development of its offshore energy and natural resources. It plans to revise legislation to resolve potential conflicts between offshore wind energy development and seabed mining as a key step to permit both sectors to proceed.
“New Zealand has some of the world’s greatest offshore wind potential, offering a significant opportunity to generate economic growth while powering our homes and businesses," said Energy Minister Simon Watts. “Offshore wind requires a significant upfront investment. That’s why we are establishing a clear regulatory regime through the Offshore Renewable Energy Bill that was introduced last year, to give developers the certainty they need to invest and kickstart the sector.”
The industry has been calling for action by the government while the development of key projects has been stalled. BlueFloat Energy, which was seeking opportunities in New Zealand, reportedly wrote the ministers last year saying the country needed to choose between offshore wind and seabed mining. BlueFloat later pulled out of New Zealand.
A partnership between Copenhagen Infrastructure Partners and the government-owned NZ Super Fund, however, has an ambitious project saying it would commit approximately US$3 billion for a wind farm consisting of up to 70 wind turbines to be located 15 to 25 miles off the coast of South Taranaki, at the southwestern side of the North Island, and on the Tasman Sea. The company has set an initial goal of 1 GW while noting the project could be scaled to 2 GW.
New Zealand’s cabinet has agreed to amend draft legislation. According to the minister, the changes will create greater investment certainty for both offshore wind and seabed mining. The reports said it would only impact seabed mining and not the oil and gas sector or existing mineral projects.
“The amendments will enable the government to use secondary legislation to designate specific marine space where permits could be invited for offshore renewable projects while there is a pause on granting new permits for seabed mining under the Crown Minerals Act,” explained Watts. “This is a pragmatic step to address a key concern raised by the industry.”
While the amendments and legislative steps will remove a key hurdle, New Zealand has not yet designated its first areas. Watts, however, said that it is likely to be somewhere in South Taranaki.
The CIP-led partnership, known as Taranaki Offshore Partnership, reports it has already invested heavily in the project. It has undertaken wind measurements and surveys. It anticipates that the wind farm could be in the construction and commissioning phase by 2030. It anticipates it will take three to four years to complete.