Electricity Generation Supercritical CO2 Geothermal Siphon

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Since the Commission met with HERA over the last 12 months, they have been busy delivering presentations and producing a series of fact sheets on the Commerce Act. It is their hope that HERA members will find these fact sheets useful on how competition law applies in members’ day- to-day business. The fact sheets explain: • Price fixing http://www.comcom.govt.nz/construction-sector/ This fact sheet explains the types of agreements between businesses that amount to price fixing. It is designed to give businesses a better understanding of the types of behaviour and communication that could put them at risk of breaching the Commerce Act. • Exemptions from the Commerce Act – This fact sheet provides an overview of the types of agreements and behaviour that are exempt from the Commerce Act. It is designed to give businesses an understanding of when the Act may not apply to them or their activities. • Commerce Commission’s leniency policy – This fact sheet explains the Commerce Commission’s approach to leniency when dealing with cartels. It outlines how a cartel member may be eligible for conditional immunity from prosecution (or cooperation where immunity is no longer available) and the processes involved. The Commission have made efforts to ensure these fact sheets are in plain English and are user-friendly. Please go to the link below to see these and other fact sheets and guidelines: http://www.comcom.govt.nz/business-competition There is also some more information about the construction survey and cover pricing on their web site, at: http://www.comcom.govt.nz/construction-sector/ Fitzroy Engineering has Critical Role in Methanol Restart As reported in HERA member Fitzroy Engineering’s June Newsletter, its Engineering capabilities’ played a key role in the recent $100 million refurbishment and re-start of Methanex New Zealand’s second methanol production train at its Motunui facility. The refurbishment and re-start of the unit known as Methanol Train 1, after lying idle for eight years, was a major undertaking for Methanex NZ and the more than 700 contractors and sub- contractors involved in the six-month project. New Zealand contractors were engaged and local fabrication and construction undertaken where economically feasible. Fitzroy Engineering inspected many items of plant and equipment, ensuring they were in good condition ready for start-up. The company was also responsible for the procurement, fabrication and installation of a critical part, a new deaerator vessel. However, some items of complex plant and equipment such as the deaerator, a device used for the removal of oxygen and other dissolved gases from the feed water to steam-generating boilers, were designed overseas. The deaerator, a large vessel about 20m long, 6m in diameter and weighing about 50 tonnes, was particularly challenging from a technical point of view as it was a new design aimed at having lower noise levels and lower steam consumption than its predecessor. The total Fitzroy Engineering re-start contract involved 20,000 hours of work by up to 50 Fitzroy Engineering staff and up to 30 subcontractors at its Waiwhakaiho premises and at the Methanex Motunui site north of New Plymouth. Fitzroy Engineering owner Dialog Group Berhad (Dialog) of Malaysia was also involved in the re-start providing detailed planning services. The Methanol Train 1 re-start project was a result of Methanex NZ signing a 10-year gas supply contract with Todd Energy, ensuring enough extra gas to run the second train and underpinning higher methanol production levels. The gas supply agreement also provides a likely long-term future for Methanex in New Zealand. HERA NEWS Jul 2012 Page 6

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