W.J. Lovell Industry Development Manager HERA (NZ Heavy Engineering Research Association)

Transcription

1 NZ Engineering Capabilities Supporting New Geothermal Energy Developments W.J. Lovell Industry Development Manager HERA (NZ Heavy Engineering Research Association)

2 HERA The Research Association of the NZ Metals Engineering Industry Established 1978 Not for profit, fully industry owned and governed > 650 members nationwide The leading technical resource centre for a wide cross section of the NZ metals and construction industry

3 Mission Statement To provide a platform for the NZ Metals Engineering Industry to explore new technologies and growth by accelerating innovation and strengthening combined opportunities through technical and marketing research, careers education, information technology and product R&D

4 Objectives of the Presentation To build confidence in NZ engineering companies engaging in geothermal energy technology Discuss factors which may have an influence on increasing NZ engineering participation

5 Robt.Stone Ltd at Poihipi Rd

6 NZ Geothermal Power Generation Trends Relatively low cost Uniquely reliable Government commitment to renewable energy Potential for about 4 times the current installed capacity

7 NZ Engineering History in Geothermal Power Development Wairakei, pioneer development (1958) Many NZ Engineering Companies have had significant involvement Several have been successful with overseas contracts NZ consultants have been amongst the pioneers and have had significant involvement in NZ and overseas

8 NZ Engineering Industry Capability Directory for Geothermal Energy A detailed up to date document Shows which NZ companies have specific expertise Includes newcomers with capability but are not currently working in this field Available from HERA Information Centre HERA Report R5-35:2007

9 Strengths Weakness Local companies Investment dollar retained in NZ After sales service Existing Skills Developing new Technologies Supporting the engineering industry Employment opportunities Reputable quality-less rework cost Inconsistent capacity Project notification not early enough Not close enough to prime contractors Lack of confidence in NZ manufacturing ability Financial ability to support insurance and performance bonds

10 Opportunity Threat To improve the operation and reliability of the station Link of manufacture to servicing capability To develop skills unique to geothermal generation construction Build credibility and substance to the industry Potential export opportunities Investment in new equipment Employment opportunities International partnerships Not cost competitive compared to low cost countries Delivery times often unachievable Overseas prime contractors commonly have partnership arrangements with engineering companies in their own area Lack of government support and industry cohesion to ensure long term success of industry investment

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12 Factors Influencing the Potential to Increase Local Content Government policies Gets, Tenderlink and Projectlink systems Use by SOE s GPS 2003, least cost to the economy as a whole over the long term Quality of tender responses Tariff concessions

13 Energy and Manufacturing Strategies Focus on Renewable Energy Manufacturing +strategy is about added value to NZ offering and export focus Financial ability

14 Potential Engineering Industry Actions Relationship and confidence building Build links with key suppliers HERA/ICN/NZTE liaison Establish and promote capability register Define industry focus

15 Define Industry Focus Local industry must focus on the requirements of prime contractors

16 Define Industry Focus Local industry must focus on the requirements of prime contractors Explore avenues of specific NZ expertise and IP development

17 Define Industry Focus Local industry must focus on the requirements of prime contractors Explore avenues of specific NZ expertise and IP development In co-operation with geothermal research providers there might also be pathways to develop NZ specific expertise

18 Define Industry Focus Local industry must focus on the requirements of prime contractors Explore avenues of specific NZ expertise and IP development In co-operation with geothermal research providers there might also be pathways to develop NZ specific expertise In the context of this workshop do people feel there is potential for NZ specific R&D

19 Manufacturing Clusters Existing Clusters Multi skilled Clusters Industry specific Cluster Recommendations Industry to develop one or more clusters specifically targeting geothermal projects

20 Pipe Spooling at Page Macrae

21 HERA Role Dependent on feedback from industry

22 HERA Role Dependent on feedback from industry Involve with prime contractors in defining skill requirements

23 HERA Role Dependent on feedback from industry Involve with prime contractors in defining skill requirements Assist with promoting and prequalification of NZ companies

24 HERA Role Dependent on feedback from industry Involve with prime contractors in defining skill requirements Assist with promoting and prequalification of NZ companies Proactive in cluster formation

25 HERA Role Dependent on feedback from industry Involve with prime contractors in defining skill requirements Assist with promoting and prequalification of NZ companies Proactive in cluster formation Focus must be with the heavy engineering industry

26 Conclusion Natural trend towards use of renewable sources for power generation

27 Conclusion Natural trend towards use of renewable sources for power generation We are already seeing the first major expansion in geothermal for decades

28 Conclusion Natural trend towards use of renewable sources for power generation We are already seeing the first major expansion in geothermal for decades The logical extension is that NZ engineering companies focus on this expanding market and use the opportunity to increase local content in each new project

29 Your ideas and comments are welcome IP ideas for NZ heavy engineering industry? Recommendation for Cluster Formation? Additions to NZ Capability Register? Not just heavy engineering? Should research capabilities be added? Is the time right to raise NZ geothermal energy to a project of national importance?

30 Mokai Geothermal Plant