Sep 26 - Dominion Post

New Zealand faces an energy crisis within a decade unless habits change now, scientists warn.

A report by a 16-member Royal Society panel of eminent business and academic energy experts recommends the nation kick its addiction to imported fossil fuels and start developing homegrown biofuels to power transport.

The report also recommends "zero tolerance" of carbon emissions and greater use of renewable energy sources such as wind, hydro and solar power.

The report by the society's energy panel says future energy needs are possibly the nation's most important problem. Chairman Jim Watson said New Zealand was totally dependent on overseas petroleum supplies and at the mercy of international markets and supply.

"The continued use of fossil fuels accelerating climate change is leading to global concern and a potential new layer of costs for carbon emissions," he said.

The Government is developing a draft New Zealand energy strategy, after public and sector consultation earlier this year.

The report is designed to be an independent and scientifically authoritative document to support the strategy development.

Dr Watson said a national energy strategy needed to recognise the looming crisis, and offered six recommendations to mitigate it:

* Largely phase out use of fossil fuels by 2020.

* Introduce biofuels quickly to cut the 6.3 billion litres of petrol and diesel consumed each year.

* Modify the transport fleet to run on renewable fuels.

* A zero carbon emission in electricity generation.

* Adhere to international carbon emission agreements.

* Continue scientific research and develop homegrown solutions.

The report says national fossil fuel reserves are almost exhausted. Substantial coal reserves would be too expensive to burn under international carbon tariffs.

New Zealand is in a prime position to develop a world-leading, commercially lucrative biofuels industry and sustainable energy- harnessing technology, it says. "Energy plays such a fundamental role in New Zealand's agricultural production, transport, economic development and social wellbeing that a strategic plan must recognise both the issues arising from uncertain supply and the opportunity to derive substantial benefits from successfully addressing the supply and sustainability problems," Dr Watson said.

BRANSON PLEDGE B3

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