Tiwai - 'It's an 'and' not and 'or' for Southland'
“Growing the pie is a much better outcome for our region. Tiwai continuing in Southland will support regional development by encouraging other big players to invest here”.
The Southland Business Chamber and Great South teamed up to put out a release where they wanted to make sure the focus remained on continuing to keep the smelter at Tiwai Point operating, while also pursuing other potential opportunities for Southland. Here is what they had to say.
The Southland Business Chamber, alongside Great South, strongly believes in the best outcome for the region is to retain the smelter and use its scale and energy flexibility to support new industries to establish and grow in Southland.
It's important to note that retaining the Tiwai Smelter and introducing other industries, such as hydrogen production, is not an "either-or" scenario. It's not about choosing between one or the other. In fact, both industries can coexist and complement each other, creating even more economic opportunities for Southland.
The jobs and GDP produced by Tiwai Smelter are significantly higher than the alternatives that have been suggested, such as data warehouses and hydrogen production. When you factor in the role it can play in the decarbonisation of New Zealand, and helping to bring new industries on stream, it is clear that having the smelter will drive even more economic opportunities for the region.
Great South CEO Chami Abeysinghe said: “Growing the pie is a much better outcome for our region. Tiwai continuing in Southland will support regional development by encouraging other big players to invest here”.
Tiwai Smelter is an important part of Southland's economy, providing jobs for 1,000 people and supporting an additional 2,500 jobs. It produces around 330,000 tonnes of aluminium per year, with most of it being exported to countries like Japan.
Furthermore, the smelter is an important contributor to New Zealand's decarbonization journey. It uses about 12% of the country's electricity, which is turned into aluminium, but it also helps provide critical inputs into our own energy security by dialling down its usage during peak energy periods.
In addition to aluminium production, Tiwai Smelter has the potential to play a significant role in the emerging green hydrogen industry. As a large industrial user of energy, it can support the build of new renewables and green hydrogen facilities in Southland. Tiwai could potentially be a foundation customer for a green hydrogen facility with a potentially large annual demand for green hydrogen in its industrial processes.
Southland Business Chamber Sheree Carey said: “It's not about choosing between retaining the smelter or introducing new industries, it's about embracing both and creating a sustainable and prosperous future for Southland.”