Lignite Conversion

New Zealand has huge challenges ahead as global demand for land, water, and energy resources, driven by a world population of over 7 billion, continues growing to the point where supply just can't keep up.

Solid Energy believes that Southland's 3 billion tonnes of recoverable lignite resource is part of the national solution to this challenge. Green lobbyists are doing their best to limit the discussion on whether or not to mine lignites to pithy slogans like "keep coal in the hole". We urge you to watch this short film and come to your own conclusions.

Solid Energy is bringing to New Zealand, and developing locally, new and innovative technologies that will unlock the value of Eastern Southland's world-class lignite resources.

This would help make New Zealand less dependent on imported fuel while producing world-class goods for export. To do this, we will use new and existing technologies to convert one of New Zealand's most abundant resources — Southland lignite — into higher value more energy-efficient forms and products.

Southland's lignite is a significant resource that can support a number of large-scale high-value development projects with 3 billion tonnes of lignite available in the coalfields of Waimumu, Croydon and Mataura, alone.

These resources are exceptionally important to Southland's and New Zealand's economic wellbeing as international oil prices continue rising to over $100 a barrel and more. New Zealand is at an economic crossroad. The social and economic consequences are clear and dismal if we leave the ample resource of billions of tonnes of lignite unused in the ground, whilst remaining reliant on expensive, imported energy resources.

How does it work?

When coal is exposed to oxygen and steam under intense heat and pressure, it transforms into a mixture of gases known collectively as syngas. This syngas is further processed through a series of controlled reactions into a liquid fuel replacement for traditional mineral fuels such as diesel.

Transport fuels made from syngas create fewer engine emissions per kilometre travelled than diesel and petrol. That means, if we can control the greenhouse gasses emitted when converting Southland lignite into transport fuel, this project could reduce global greenhouse gas emissions.

Syngas can also be developed into fertilisers to support New Zealand's world-leading food production sector. Syngas from a lignite conversion plant can also be refined into hydrogen, using a shift converter. This means the plant could also provide energy for hydrogen-powered vehicles, which produce only water as a by-product, if they become widely available.

What are we doing?

Solid Energy plans are on track to develop new and existing technologies. We will trial these technologies in local conditions through demonstration pilot projects which, if successful, will lead to larger-scale commercial operations.

Progress has been made on potential projects, specifically briquetting and coal to fertiliser, but most of these projects are still at a very early stage with important technology and economic issues requiring more detailed work.

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