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Genesis Energy Signs New Local Coal Deal
Genesis Energy and BT Mining have signed a two-year deal for 240,000 tonnes of domestic coal to be supplied to the Huntly Power Station, strengthening New Zealand's energy security.
www.genesisenergy.co.nz
Genesis Energy has struck a two-year deal with New Zealand mining company, BT Mining, to supply 240,000 tonnes of coal to the Huntly Power Station (HPS) — equivalent to 10,000 tonnes per month. The deal further strengthens HPS’ role in providing flexibility and security to the electricity market by diversifying its fuel supply chain.
While the majority of Huntly’s coal is currently sourced from Indonesia, this agreement will provide a significant portion from a domestic source. In an average year, Huntly burns around 300,000-500,000 tonnes of coal; gas declines, dry years and low wind can push this total to about 1 million tonnes.
“This agreement secures a reliable local source of coal for Huntly Power Station, reducing our reliance on overseas shipments and protecting against global supply chain disruptions. It’s about keeping the lights on during periods when renewable generation is low,” said Tracey Hickman, Genesis Energy Chief Operating Officer.
Benefits of the agreement include:
While the majority of Huntly’s coal is currently sourced from Indonesia, this agreement will provide a significant portion from a domestic source. In an average year, Huntly burns around 300,000-500,000 tonnes of coal; gas declines, dry years and low wind can push this total to about 1 million tonnes.
“This agreement secures a reliable local source of coal for Huntly Power Station, reducing our reliance on overseas shipments and protecting against global supply chain disruptions. It’s about keeping the lights on during periods when renewable generation is low,” said Tracey Hickman, Genesis Energy Chief Operating Officer.
Benefits of the agreement include:
- Supply chain resilience – reduces reliance on overseas shipments and mitigates risks from global market volatility or shipping disruptions.
- Operational certainty – ensuring Huntly can continue to provide reliable backup and firming capacity for the national electricity grid.
- Local economic impact – supports domestic mining operations and associated jobs in the Waikato region.
- New Zealand partial self-sufficiency – mitigating exposure to geopolitical risk and global market pricing
- Genesis remains committed to fuel security and the transition to a secure electricity system that supports a lower carbon future.
