Chief executive Murray Jackson told the National Power Conference in Auckland today that two issues had prompted Genesis to rethink its thermal generation plans.

Recent advice from Solid Energy, Genesis’ main coal supplier, had revealed a significant shortfall in recoverable coal in the Waikato.

Solid Energy estimated economically recoverable reserves of around 50 million tonnes remained. Even with imported coal this could not provide certainty of operation in the existing Huntly power station for more than another 17 years.

Jackson said he had called for an independent report on how to recover 100 million tonnes of coal at the Huntly West Mine that had been earmarked for fuelling the two 400MW stations.

A second issue was the progress of research and development into carbon capture and geological sequestration.

“While researchers around the world are working on technology to capture and store carbon dioxide, progress is not sufficient to commence the design of large scale commercial plants," Jackson said.

“Our strategy going forward will require diversification, and until we can secure large reserves of coal we will continue to develop gas and wind generation.”

Jackson said Genesis was participating in the Cardiff-2B sidetrack well in onshore Taranaki, with rights to all commercial deep gas found, and was a partner in the Kupe oil and gas field off south Taranaki, as well as being a partner with Contact Energy in an LNG feasibility study.

Further, Genesis was appealing the local government decision against its proposed Awhitu wind farm south-west of Auckland, and was continuing to survey other potential wind farm sites.