Over the last few days Wellington has been hammered by torrential rain and floods, and one person is still missing dead. So naturally its the perfect time for a bunch of Aussie grifters to announce a huge, high-emissions project, a Southland lignite-to-urea factory:
Australian company Victorian Hydrogen has applied to explore for lignite on 3141 hectares of Southland farmland in the hopes of eventually setting up a 1.5 million tonne per year urea fertiliser production plant.Unmentioned: the emissions from the project. But the Parliamentary Commissioner for the Environment looked at this when Solid Energy was proposing similar insanity back in 2010; they found that making urea from lignite produced 1.3 tons of carbon for every ton or product (compared to 1.1 tons for making it from natural gas at Kapuni, or 0.8 tons for making it from natural gas in the Middle East). So 1.5 million tons of urea a year from lignite is 2 million tons of carbon dioxide - a figure completely inconsistent with our future carbon budgets.The executive director of Victorian Hydrogen, Allan Blood, said the proposed $3 billion lignite-to-urea project would give New Zealand’s agricultural sector self-sufficiency.
The project is expected to apply for approvals under the fast-track regulatory process. Blood said key milestones would include applying for regulatory consents and engaging with landowners, completing initial geological and hydrological studies by spring 2026 and progressing to detailed engineering design, and a targeted three-year pathway from the conclusion of studies currently underway, to full production.
Why are they looking at Southland? Because their plans to do it in Australia have fallen through: the state government won't give them consents, and no-one will sell them coal anyway. Whereas Aotearoa has corrupt politicians willing to grant consents for "donations", and a policy of explicit pollution subsidies, so the grifters will be paid to destroy the climate. Interestingly, those subsidies are justified on the basis of preventing "emissions flight", but as Middle East production is in fact cleaner than domestic, it seems that it is in fact a perverse incentive for dirty production.
While America's latest Middle east war and the resulting disruptions in international fertiliser flows are being used as a justification here, if consented this factory won't be producing before 2030. By which time you would expect those disruptions to have been resolved. So its an opportunistic grift, presenting a dirty "solution" to a problem which won't exist when it is complete, aimed at collecting huge subsidies. It should not be permitted to progress. And if the present regime corruptly grants it fast track approval, it should be legislatively revoked by the next government. We simply cannot afford this madness.
