Solid Energy lodges appeal over hydro scheme

Published: 5:57AM Tuesday February 09, 2010 Source: NZPA

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Hydro Development Ltd (HDL) says Solid Energy has lodged a notice of appeal against consents for its Stockton Plateau Hydro Scheme.

The move had been signalled by state-owned Solid Energy, which wants to use the water for its own scheme.

HDL won resource consent to build its scheme, allowing the company to harness tributaries of the Ngakawau River.

The plan consists of using polluted water from the coal mines on the Stockton Plateau and channelling it through tunnels, reservoirs and power stations, to generate power before discarding it in an ocean outfall offshore.

HDL says the notice of appeal repeated Solid Energy's unsubstantiated concern that the scheme would constrain mining activity.

"This appeal is using taxpayers' funds to frustrate an innovative private sector initiative," HDL says.

Implementation of the project would proceed despite these frustrations.

Solid Energy has said its proposed scheme would be $70 million cheaper than HDL's estimated construction price tag of $200 million.

The HDL scheme is expected to provide a continuous power supply of about 20 megawatts, with output up to 50MW for shorter periods during and following rainfall.

The company estimated construction would create about 50 jobs.

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