Genesis turns to NZ coal as Huntly demand heats up

Monday, 22 September 2025

Genesis Energy will start burning more New Zealand-mined coal at its Huntly power station, instead of relying very largely on imports.

The company announced it had agreed to buy a total of 240,000 tonnes of coal over the next two years from BT Mining, whose mines include the sub-bituminous Rotowaro and Maramarua mines nearby in Waikato.

Genesis has largely relied on burning relatively low quality Indonesia coal to generate electricity, while much of New Zealand’s coal — for example from the West Coast — is of higher-quality and exported for use in steel mills overseas where it earns a premium price.

But a Genesis spokesperson said the coal it had agreed to source from BT Mining was ideal for use at Huntly.

It is understood the main reason Genesis hasn’t recently used coal from Waikato is that its demand tends to be relatively erratic, making it a harder customer to supply.

Genesis indicated in a statement that the majority of the 300,000 to 500,000 tonnes of coal it typically consumes each year would continue to be imported. Its consumption could grow to a million tonnes in “dry years”, it noted.

Genesis chief operating officer Tracey Hickman said the agreement with BT Mining secured a reliable local source of coal for Huntly, “reducing our reliance on overseas shipments and protecting against global supply chain disruptions”.

Resources Minister Shane Jones encouraged the use of locally-produced coal in a policy paper he produced for NZ First party leader Winston Peters in July, saying it was important the country had a back-up plan in the event that geopolitical uncertainty halted the delivery of coal from Asia.

He said following Genesis’ announcement that the purchase use of local coal was a pragmatic move that would also boost the Waikato regional economy.

The country’s big four power companies announced in August they had reached a deal that would see them in effect jointly foot the bill for a 600,000 tonne winter coal stockpile at Huntly and ensure its three Rankine turbines — which are capable of burning coal, gas or charcoal-like pellets — would remain available until at least 2035.

Genesis announced in 2015 it would retire its two Rankine turbines in 2018 and stop burning coal.

But it subsequently canned that plan and brought a third previously-mothballed Rankine unit back into service to add to its coal-burning capacity.

Huntly has been burning more coal and less gas in recent years as natural gas supplies have started to dwindle, despite mixed evidence on the likely climate-change impact.