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Submissions filed against proposed incinerator with Overseas Investment Office

Tuesday, 13 June 2023

An artist
An artist's impression of the proposed waste-to-energy plant in Waimate.

Two groups opposing a proposal to build a waste-to-energy plant in Waimate will file submissions with the Overseas Investment Office (OIO) against the sale of land for the plant.

South Island Resource Recovery Limited in 2021 announced plans to build a $350 million waste incinerator, and in April 2022 purchased a 15-hectare piece of land from Murphy Farms Limited, in Glenavy, for the proposed plant, known as Project Kea.

The final sale of the land, which is located on the corner of Carrolls and Moven-Glenavy Rds, is subject to approval from the OIO as overseas parties own 60% of SIRRL.

Zero Waste Network general manager Dorte Wray said sale of rural land in South Canterbury for a “massive toxic incinerator” is a “bad idea”, and should not be allowed to proceed.

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“Purchases of sensitive New Zealand land must pass a “benefit to New Zealand” test.

“We have filed a submission to the OIO outlining why this purchase fails the ‘benefit to New Zealand’ test. This incinerator would create large CO2 emissions that would otherwise not exist. It is little more than a dirty fossil fuel plant.

“Burning rubbish is more polluting than coal or gas. It also releases toxic ‘forever chemicals’ that are illegal under the Stockholm Convention, which New Zealand signed in 2004.”

A screen grab of a computer concept photograph from a resource application for the proposal to build a waste-to-energy plant near Glenavy in South Canterbury.
A screen grab of a computer concept photograph from a resource application for the proposal to build a waste-to-energy plant near Glenavy in South Canterbury.

SIRRL is 40% owned by Renew Energy Limited (New Zealand), China Tianying Inc (CTNY) owns 41%, and its European subsidiary, EUZY, owns 19%.

Wray said they will also submit that any claims about the economic benefits of incinerators “do not stack up against real world zero waste alternatives”.

“Some estimates show that for 10,000 tonnes of waste products and materials, one job can be created if incinerated, six jobs if landfilled, 36 jobs if recycled, and up to 296 if refurbished and re-used. Data further suggests even greater potential for re-use at 800 jobs/10,000 tonnes of material.

A flowchart on how the proposed waste-to-energy plant proposed for Waimate will work.
A flowchart on how the proposed waste-to-energy plant proposed for Waimate will work.

“The push to build incinerators here is being driven by overseas companies looking for new markets because Europe is turning away from incinerators due to the climate impacts. This is outdated technology with significant negative impacts.”

Wray added zero waste solutions which support community employment and climate resilience are the future.

“There are already hundreds of these projects operating across the country right now.

SIRRL director Paul Taylor said SIRRL also looks forward to working with the Zero Waste Network to assist in their focus on waste minimisation and recycling.
SIRRL director Paul Taylor said SIRRL also looks forward to working with the Zero Waste Network to assist in their focus on waste minimisation and recycling.

“Allowing an overseas company to come here and contribute to climate change while poisoning the local population is clearly not in New Zealanders’ interest. This decision for the OIO is really easy: decline it.”

Heather Campbell, spokesperson for Why Waste Waimate, another group opposing the plant, said it still has “fundamental questions” about the company’s unchanged budget, the South Island population’s ability to generate enough waste to keep the plant running, the end of life plan, validity of endorsements, agreements, the land purchase and the location.

“We hope OIO is asking these questions,” the group said via a statement.

Paul Taylor said Project Kea is currently going through the OIO approval process and SIRRL has provided the office with the necessary information required.
Paul Taylor said Project Kea is currently going through the OIO approval process and SIRRL has provided the office with the necessary information required.

“Why Waste Waimate Inc and its members will be making submissions against the OIO application.

“SIRRL’s … proposal to build and operate on a floodplain on prime agricultural land in Glenavy, involves the technology and participation of the Chinese partners; but what may work in a huge Chinese population centre bears no relation to a South Canterbury rural scenario.”

SIRRL director Paul Taylor said Project Kea is currently going through the OIO approval process and SIRRL has provided the office with the necessary information required.

“Given the public notification of Project Kea application under the Resource Management Act, SIRRL is looking forward to the public submission and hearing process, so all points of view can be listened to and considered by Environment Canterbury and the Waimate District Council.

“SIRRL also looks forward to working with the Zero Waste Network to assist in their focus on waste minimisation and recycling while Project Kea manages the safe treatment of residual waste.”

Toitū Te Whenua Land Information New Zealand head of regulatory practice and delivery Rebecca McAtamney said it received an application for consent for the proposed plant on April 20, 2023.

“It is being processed under the benefit to New Zealand (farmland) and significant business assets consent pathways. It is also subject to a national interest assessment,” McAtamney said.

“This application has an assessment timeframe of 130 working days, therefore a decision is unlikely to be made before November 2023.

“Our role is to assess applications for consent under the Overseas Investment Act 2005. Our assessment does not involve a public consultation process however we will consider third party submissions made in respect of the application.

“Past applications for other projects are only taken into account to the extent they are relevant to the current application.”

In May, SIRRL narrowly won an appeal of the decision to return its second consent application due to “insufficient information”.

The hearing was held at ECan’s Council Chambers in Christchurch, in April, and independent commissioner Rob Enright was in favour of SIRRL’s objection, and directed Waimate District Council and Environment Canterbury to accept the resource consent application as complete, in his report released on May 12.