Benefits for Waikato
A Waikato specific fuel switching pathway will enable:
- a full view of biomass resource availability, the potential volumes, costs and future demand for bioenergy
- coordinating infrastructure and streamlining electricity demand for the future
- early insights for decision makers to improve efficiency and future proof infrastructure investments
- best use of information sharing to encourage demand flexibility through collaboration.
About the Waikato RETA
A total of 91 sites spanning the dairy, meat, industrial and commercial sectors are covered by the Waikato Regional Energy Transition Accelerator (RETA). These sites either have process heat equipment larger than 500 kW or are sites for which EECA has detailed information about their fuel switching pathway. Collectively, these sites consume 12,200 TJ of process heat energy, primarily from piped fossil gas, and currently produce 730 kt per year of CO2e emissions. RETA demonstrates the pathways to switch this fossil fuel use to renewable energy.
The focus of the Waikato report – the culmination of phase one of the RETA programme – is the role of renewable biomass as a cost-effective, reliable alternative for industrial high-temperature boilers. Both biomass and electricity are considered as potential fuel sources.
Energy efficiency and heat pump projects are also important for reducing energy consumption and right sizing the boiler investment, which in turn affects decision-making around fuel switching.
The report explains a range of fuel switching pathways, all of which show how the combined decisions of a range of process heat users may lead to common infrastructure challenges and opportunities from a supply perspective. Across the 91 sites, there are 194 individual projects covering demand reduction, heat pumps and fuel switching. The marginal abatement cost or 'MAC Optimal' pathway sees fuel decisions that result in 8% of the energy needs supplied by electricity and 92% supplied by biomass.
Insights explored in the Waikato report:
- How the sensitivities across gas pricing and supply impacts pathways.
- The key role demand reduction and heat pumps play in the fuel switching decision and infrastructure investment.
- Timeframes for fuel switching under different pathway scenarios, that is:
The business as usual or ‘BAU’ pathway, which uses actual project timing or 2050 where unavailable, is the slowest path.
The ‘MAC’ optimal pathway suggests 42% of fossil fuel use can be reduced by projects that are economic now.
- The role for infrastructure to play in enabling the transition to renewables and possibly bringing it forward.
- The optimisation of infrastructure investment, capacity, and timing.
Read the report
Download the Waikato RETA report and discover the regional benefits of taking a regional approach to fuel switching and demand reduction.
Waikato RETA Summary Report [PDF 4.7 MB]
Spare Electrical Capacity and Load Characteristics [PDF 14 MB]
Each renewable energy project is a step toward strengthening Waikato’s economy, providing lasting employment opportunities and protecting export markets focused on their supply chain.
Next steps
EECA is currently completing RETAs throughout the rest of the North Island.
We are happy to hear from anyone wanting to support the implementation of recommendations in the Waikato RETA report.
Email RETA@eeca.govt.nz with any questions.