An initiative towards a flagship Maori community owned renewable energy enterprise.

Private & Confidential

Flagship Marae-owned Renewable Energy ProjectKaramea InsleyChairman and Project ManagerSeptember, 2013

Project Update- 2013 (Engineer) Odyssey Design Challenge- Our partners- Key next steps

Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks

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Program

• 12:00 p.m. - Introduction • 12:30 p.m. – NZ 2013 Odyssey Design Challenge

– Student Engineer Presentations (times 4)• Questions and answers • CEO (Engineers Without Borders)• 1:30 p.m. – MP (And, Co-leader of Maori Party) Te Ururoa Flavell• 1:50 p.m. - Wrap up and next steps• 2:00 p.m. - kai

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• Hon. Tariana Turia• Dr. Apirana Mahuika• Sir Wira Gardiner• Mayor John Forbes• Eric Pyle – CEO NZ Wind Energy Association• Dr. Patrick Strange – CEO Transpower• Brent Donaldson – Hancock Forest Management• Cnr Manu Caddie (Gisborne)• Waimate Ngamoki• Moana Boyd• William Ngamoki

Apologies

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Project Member Skills & expertise

Land restoration Karamea Insley (Chairman) Undergraduate & Masters Commerce Degrees

Carolyn Insley Diploma in Horticulture – Massey University

William Ngamoki Plantation and indigenous forestry

Renewable energy Karamea Insley (Project Manager)

Sarah Henry Kura kaupapa

Marcia Insley Bachelor of Laws & Diploma in Business

Moana Boyd Bachelor of Laws & Environmental Management

Tere Insley Bachelor of Architecture

Astrid Tawhai Hauora

Tatahi MacDonald Student at Auckland University

World-class Project team

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International AmbassadorMs. Ana Ngamoki

Discussing why Kaitiakitangaworks

Group discussion with Japanese participants

Making recommendations to the Cabinet office of Japan

“They see this project as an ideal model of collaboration that they would like to follow. It is humbling knowing that our whanau project is being seen as a leader in collaborative projects for these countries”

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FLAGSHIP RENEWABLE ENERGY

Guiding principles:- Marae-owned- Nuku, Rutaia, and Toihau- Project leadership stays with the marae- Never put our land at risk

Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks

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• Hapu hui towards the end of 2012 to discuss our:• Issues• Challenges• Goals and • Strategies (DRAFT)

• $10 million application to EBOP $40 million new infrastructure fund• Was DECLINED

• We carried on ….• The Hikurangi Foundation• Engineers Without Borders (2013 Odyssey Design Challenge)

How did we get here?

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• Cheap power for the whanau through an energy company

owned by the hapu +

• Energy security and a new revenue stream for the hapu +

• New and real jobs +

• Model project management approaches + and

• Share knowledge and outcomes with other TWAA marae

(and nationally an estimated 1,300 marae) and Iwi

Our goals for the project

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Project Plan2013

Qtr. 2 Qtr. 3 Qtr. 4

2014

Qtr. 1 Qtr. 2 Qtr. 3 Qtr. 4

Odyssey Challenge

Judging

Investor search

Contracting and engagement

Consenting

Construction

Commissioning

Aunties flick the switch

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2013 ODYSSEY DESIGN CHALLENGE

Engineers Without Borders- 9 teams (of 3 or 4)- May visit to Omaio- Auckland and Canterbury Universities- Concept plan and 20 Page business-case- Expert Judging Panel in Auckland

Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks

Private & Confidential

Private & Confidential

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THE TOP 2013 ODYSSEY TEAMS

- Te Hauhake Pungao (Auckland)- UCAN (Canterbury)- Ellen Palmer (Canterbury)

Sponsor – Mangaroa Ohotu & Te Karaka Land-blocks

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Marae 1 Marae 2 Marae 3

Charitable Trust

Holding Company

Renewable Energy

Land-based Aquaculture

Other new enterprise

DRAFT structural framework

Maori Land block 1

Maori Land block 2

Maori Land block 3

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Note: TTWMLA – Te Ture Whenua Maori Land Act

Private & Confidential

Land-based Aquaculture ProjectNew Zealand’s fastest growing seafood sector• Alignment with Ngati Porou Seafoods

Group project

• Aquaculture makes up approximately 20% of NZ’s total fisheries production (by value) and 15% of NZ’s total seafood exports (by value)

• About 66% of New Zealand’s aquaculture production is exported

• Land based Finfish aquaculture is our preference as a means of Supply for fresh fish exports and value added products which includes by-products

• Head of NPSG (Mark Ngata) will come and meet with us in early 2014 to update on status of project

• We are hosting the leading European Food Innovation experts in Gisborne in November this year

• Also leading large scale Iwi-owned Geothermal Greenhouse development project in Kawerau

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Partners and/or Contributors (or other engaged Parties)

• The Hikurangi Foundation– Tyndall Foundation– Todd Foundations– Banks

• Engineers Without Borders– Auckland University– Auckland Institute of Technology– Canterbury University– AECOM international– Sinclair, Knight Merz

• Institute of Professional Engineers of New Zealand

• Scion Forest Research• Environment Bay of Plenty• Opotiki District Council

• Chapman Tripp• Lead Government Energy advisor• Transpower• New Zealand Wind Energy

Association• New Zealand Bio-energy Association• Hancock Forest Management• Motu Research• Maori Land Court• Mangaroa Ohotu & Te Karaka Land

Blocks• Other marae• Other IwiNo help from Te Puni Kokiri or any other Government department!

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Short and medium term next steps

Immediate next steps Project plan to 2014• Peer-Review of Odyssey

projects• Complete business-case

– Late October/early November 2013

– Kill/go decision

• Finalize legal structures• Investor search and

commitment• Landowner hui• Implementation in early 2014

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1. A key challenge will be:– Effective contracting project into the NZ energy market

(generators, wholesalers, retailers, and lines companies)– Getting certainty around future wholesale energy prices.

2. Capital investment (linkage to Whanau Ora) – Estimate from preliminary Engineer analysis of between

$3.0 to $5.0 million over 1 to 3 years– Final detailed business-case will be available late October-

early November 2013 confirming final numbers

3. Access to Government home insulation program

How can Government help?

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• While we have had setbacks, our project is on-track with our project plan; and

• We have the best technical (science, engineer, legal and commercial) experts in New Zealand and the world helping us; and

• It is our whanau and hapu who own and lead the kaupapa (no-one else); and

• There has been no cost to the marae; and

• We have not (and will not) put our lands at risk.

Summary

Kaitiakitanga Community Energy Project A Hybrid Renewable Energy Solution

Ellen PalmerUniversity of Canterbury

Our SolutionTwo sphere hybrid solution:1. Renewable generation sphere2. Home improvements and generation sphere

Design Matrix

Design Criteria Solar PV Array FarmDomestic Solar Hybrid Thermal/PV panels

Wind Turbines

Biomass (wood) Gasification Combined Heat and Power Plant

Domestic Wastewater BiogasMicro Hydro

Domestic improvements (insulation, heat exchangers)Vision and values      Cost to implement      Cost to operate      Economic benefit      Payback time      Feasibility      Ease of consent     N/ASustainability      Energy return on energy investment (EROEI) 3:1-10:1 5-8 18:1 7 7 40-200 N/AScalability N/A   N/ARepeatability      Predictable generation             N/ACriteria fully meet/ Great!Criteria mostly meet/ OKCriteria not meet/ badNo geothermal resourceMarine energy technology not sufficiently mature

Home Sphere Decrease energy use. Improve energy education. Generate own electricity Generate own gas.

Home Energy EfficiencyReduce energy usage in each home.

• Free Eastern Bay of Plenty Energy Trust Home Assessment• Improved home = improved health• New homes design and built to Green Star or similar standards

Heat Exchangers40mm and 50mm Shower Water Heat Recovery Units:• Complies with NZ and Australian Plumbing Standards• 5 year guarantee permanent fixture means savings with every shower• more pressure at the shower rose in rural/low pressure systems• $446.50/ unit

Home Energy Generation Home biogas to produce gas from wastewater. Replaces septic tanks.

Cost estimated to be $2000-$5000 per tank .

Solar Energy Resource You have a great solar energy resource!

Hybrid Solar Thermal PV Panels• Generate electricity and hot water.• Roof top mounted• Battery banks store electricity

• 2.5kW system costs approximately $8000 plus $1500/battery • Saves about $650/year = return approximately 8%

Renewable Energy Generation Sphere- Distributed generation- Electricity sold to local network

Solar PV Arrays Solar Farms:• Tokelau• Westmill Solar Cooperative in England Area (m2) Installed Cost

kWp Output kWh annual

70 $41,000 10 15000100 $81,600 20 30,000180 $102,000 27 37,500

Solar PV Arrays Generate electricity in a scalable manner

Design Criteria Solar PV Array Farm (Kyocera)Vision and values MetCost to implement $81,600/ 100m2/ hapu ($248000 total) for fixed systemCost to operate LowEconomic benefit $506,000/annum if sold @ 7c/kWhMeet approx. 90% of local demandFeasibility HighEase of consent Will meet RMA requirementsSustainability meets ISO 14001 Energy return on energy investment 3:1-10:1Scalability Suitable for all hapu locationsRepeatability Suitable for all other hapus in Iwi. Predictable generation Daily generation, variable electricity output.  Output Characteristics 30,000 kWh/year9.6% degradation after 25 years (vs. 20% industry)Manufacture World wide warrantyVertical integrated manufacturing for quality controlLong term sequential testing

Sun Tracking MountingIncreased cost but increased efficiency and energy output

Wind TurbinesGenerate electricity in a scalable manner

Design Criteria Alize Wind TurbineVision and values MetCost to implement $58,000/turbine + installation approx. $12,000 Cost to operate LowEconomic benefit $140,000/turbine/annum if sold @ 7c/kWhFeasibility HighEase of consent Meets RMA requirements, depends on community supportSustainability metEnergy return on energy investment 3:1-10:1Scalability Suitable for all hapu locationsRepeatability Suitable for all other hapus in Iwi. Predictable generation Variable, unpredictable outputPhysical Characteristics

7m diameter rotorSilent Low cut-in wind speed Direct drive Automatic furling safety systemOutput Characteristics 20,000 kWh/turbine/year @ 5m/sMax output 10kWManufacture Guarantee: 5 years minimumDesign lifetime: 25 yearsMaintenance free

Wind Resource

Wind TurbinesVertical axis turbines versus Horizontal axis turbines

Sky Farm 50kW Turbine$249,000.00 NZ

Biomass Resource Forestry slashMaize and biomass waste

Biomass Design Criteria 250 kW Gasifier Combined Heat and Power Plant1.5 MW Gasifier Combined Heat and Power PlantVision and values MetCost to implement $0.8 million $5 millionCost to operate $0.1 million $0.5 million 

Economic benefit Significant (>$500, 000), depends on use of heat and cost of slash to gateFeasibility HighEase of consent Will meet RMAEnergy return on energy investment 7:1Scalability Scalable only between two optionsRepeatability Dependent on available biomass, only 1 plant for Iwi recommendedPredictable generation Yes , provide dependable generation on demandPhysical Characteristics 100m2 200m2 Output Characteristics 250 kWe and 100kWth 1.5 MWe and 3MWthManufacture Design life time: 25 years

Converting forestry waste into electricity and heat using gasification

-Readily available biomass-Electricity and heat energy products-Heat for Aqua/horticulture industries

Heat Energy UsesFits with desire for aquaculture industry

Malaysian prawns are grown at optimal rates in heated pools.

Selling Electricity to Network RETAILER SYSTEM SIZE EXPORT POWER RATE

Contact Up to 10kW 17.285¢ / kWh, + GST

Contact More than 10kW 7.0¢ / kWh, + GST

Mercury Energy - 3.5¢ / kWh

(Auckland only) Trust Power Up to 10kW 7.0¢ / kWh, + GST

Genesis - 4 - 7¢ / kWh (North Island Only)

Meridian Up to 10kW

25c for the first 5kWh exported per day 10c for the remaining exported kWh per day + GST

• Set up as distributed generator?• Set up as retailer?• Set up micro grid?• Political decisions

Grid optionMicro grid

Implementation2014 – Aunties flick switch on Solar PV Farm2015 – Wind turbines online; Home energy generation and improvements2016 – Biomass plant online

Bio Gasification plant in Te Kaha in close proximity to sub station.

Wind turbines and PV arrays co-located to share grid connection infrastructure, close to existing transformers

Acknowledgements Thanks to Stuart MacWilliam, Renewable Solutions LtdThanks to you for this opportunity and your attention!

Questions?Two sphere hybrid solution:1. Renewable generation sphere2. Home improvements and generation sphere