KaitiakitangaAnd,

Sustainable development and Maori LeadershipChris Karamea Insley

Generation ZeroWellington

August, 2014

Outline

The Maori Economy (as a driver of sustainable development)

International and Domestic (sustainability) policy development

Maori (Iwi) Leadership

Sustainable development projects (Practical case studies)

Renewable energy

Renewable energy to High-value Food strategy

Geothermal energy

Community owned Renewable energy

CLIMATE CHANGE AND IWI

Iwi leadership Dr. Apirana Mahuika – Chairman of Iwi leadership Group (Climate change)

Climate change is a critical and important issue for Iwi and Maori given:• Our intergenerational commitment; and• Our integrated value drivers

• Economics• Social (people)• Environment; and• Culture (our identity)

Maori economy(2010 NZ millions)

Base Maori economy

Diversified Maorieconomy

Source: BERL 2010

Comparative GDP GrowthHistoric comparative growth

2001 2006 2010$0.0

$20.0

$40.0

$60.0

$80.0

$100.0

$120.0

$140.0

$160.0

$180.0

$200.0

$9.4$16.5

$36.9

$108.6

$144.5

$151.1

Maori GDP Non- Maori GDP

NZ$ bil-lions

Forecast comparative growth

2010 2015 2020 2025 2030$0.0

$100.0

$200.0

$300.0

$400.0

$500.0

$600.0

$700.0

$800.0

$900.0

$36.9$78.9

$168.5

$360.0

$769.3

$151.1$181.7

$217.9$261.3

$313.3

Maori Non-Maori

NZ$ bil-lions

Iwi leadership on ETS pricing policyNew Zealand Carbon-price collapse cost Iwi $600 million

$1.4 billion Price-gouging by Energy companies (polluters)

NZU Spot-Price (2009 to 2013)

Source: Infometrics (May 2014). Liquid fuels and electricity. NZ ETS Carbon Cost and Pricing Comparison Study. Source: OMF Financial (May 2014)..

Iwi Leaders $15 Forestry Proposal

Social: 50,000 new and permanent jobs in the regionsTargeting 1.2 million hectares of Maori under-utilized lands

Environmental: Address some of the worst soil erosion in the world

Dr. Apirana Mahuika

Economic: Restore $400 million to IwiAttract $800 million of foreign direct investmentNo cost to tax-payers

SUSTAINABLE DEVELOPMENT PROJECTS (practical Case-Studies)

Renewable energy

Renewable energy to High-value Food strategy

Geothermal energy

Community owned Renewable energy

Geothermal Steam development

Our Performance and Growth plans

• Treaty Settlement of $NZ10 million

• Current net asset book value $NZ35m

• Market value $NZ70m+• 20% compound annual growth

rate (CAGR)• Resource consent to double

take from steam field• Strategic plan to continue

growth through diversification

COMMUNITY-OWNED RENEWABLE ENERGY

Kaitiakitanga (sustainability)

Practical case study leveraging community owned assets towards a flagship marae-owned renewable energy project at Omaio in the Eastern Bay of Plenty

Our goals and non-negotiables

Our non-negotiables

• Never put our land at risk; and

• Leadership remains with us

Our goals:

• Cheap power for the whanau through an energy company owned by the hapu;

• Energy security and a new revenue stream for the hapu;

• New and real jobs; and• Model project management approaches

2013 (Omaio) Odyssey Design Challenge

Legal Structure (draft)

Charitable Trust

$ Charitable distributions

GP Company

$

Māori Landowner(s)

Māori Landowner(s)

Māori Landowner(s)

Leases

Trustee Company

Te Whānau-a-Nuku

Te Whānau-a-Toihau

Other hapu (marae)

Directors / Shareholders

$

Land-based Aquaculture Greenhouse developmentRenewable Energy

OUR ENERGY TO INNOVATIVE FOOD STRATEGY

Leveraging European technology capabilities towards high value innovative foods from an integrated Maori-owned value-chain

Energy to food strategy

2014 20192016-17

Renewable energy100% Maori ownership

BUSINESS CASE(Analysis, sensitivity and scenario modeling)1. Market Research2. Plant configuration3. Connect to geothermal

steam fieldWageningen Institute, andNew Zealand Peer Review• Auckland University• Plant & Food

Stages 1 to 3

5. Healthy low-cost foodUse excess heat• FeyeCon – Super critical• Separex – Supercritical• Fraunhofer Institute – Packaging

Investment(Scale-up)• Equity (Maori/Iwi)• Debt• Government (PGP)Legal• Structuring• Intellectual Property

Stage 5

4. Low cost Greenhouse produced foodWageningen University• Greenhouse Technology,

and • Training our peopleFraunhofer• Robotics and Automation• Training our people

Investment(Scale-up)• Equity (Maori/Iwi)• Debt• Government (PGP)Legal• Structuring• Intellectual Property

Stage 4

6. NutraceuticalsSuper Critical Extractives(Plant oils, fish oils etc..)• Wageningen University• FeyeCon• Separex • Fraunhofer Institute – Packaging

Investment(Scale-up)• Equity (Maori/Iwi)• Debt• Government (PGP)Legal• Structuring• Intellectual Property

Stage 6

OUR NEW ZEALAND PARTNER STRATEGY

- Leading New Zealand science and technology organizations- One to one relationships with us- Applied (tech-transfer) focus

Expert Review PanelAlastair BrookesQualifications: MSc Renewable Energy Systems Technology, Loughborough University (2007, Distinction); BScTech Engineering and Business Studies, Sheffield University (1997, 2:1, Hons).

Christian JirkowskyQualifications: Mechanical Engineering, Federal College of Mechanical Engineering.Experience Christian is a General Manager with over 20 years of experience in areas such as: Power and Heat Generation via Biomass and Fossil Fuels, Emission Control and Heat Recovery Systems; and markets such as Europe, Oceania and Americas. Proficiency in Mechanical and Performance Engineering as well as in Team Building and Leading.

Doug HattersleyQualifications Bachelor of Engineering (Honours) degree, is a Chartered Professional Engineer, Graduate Member of the Australian Institute of Company Directors.Experience Doug has over 39 years experience on large infrastructure projects in USA, New Zealand, Africa, South America and Asia.

Pat BodgerQualifications Doctor of Philosophy (PhD), Electrical Engineering, University of CanterburyExperience Pat is a Professor of Electrical Engineering at the University of Canterbury specialising in Power Systems. Pat is also a director of the Electric Power Engineering Centre, a university-based research organisation that consults to industry. Pat has over 35 years’ experience in electric power engineering.

Patrick HarnettQualifications Bachelor of Science with triple major (Computer Science/Operations Research/Statistics) from the University of Canterbury, and a Master of Commerce with honours in Operations Research. Qualified Chartered Secretary and member of the Institute of Directors.Experience Patrick works as a professional problem solver following from extensive work in the area of deregulated energy markets.

Stacey FellowsQualifications B.Tech (Biotechnology and Bioprocess Engineering) Hons, Massey University (1993).Experience Stacey has 17 years experience of process engineering in the chemical and dairy industries. Her project experience includes Fonterra Energy Efficiency Project which contributed to 15% energy savings.

Susan KrumdieckQualifications PhD, Mechanical Engineering, Advanced Materials Processing, Combustion, Biofuels, University of Colorado Boulder, BS, MS, Mechanical Engineering, Energy Systems Engineering, Arizona State University.Experience Susan is Associate Professor in Mechanical Engineering at the University of Canterbury where she has been based since 2000. Her areas of research include transition engineering, energy systems engineering, energy demand management and fossil fuel reduction.

Richard GapesWas born in New Zealand and graduated in Chemical and Materials Engineering followed by Biotechnology. He then worked in differing fields in private industry including consulting engineering, plant construction in both the dairy and mining industries, and in production in an ethanol distillery. He then completed his doctorate in Austria and headed the research group Biochemical Engineering for many years.

OUR INTERNATIONAL PARTNER STRATEGY

- National and International reach- World leading science and technology organizations- One to one relationships with Maori- Applied (tech-transfer) focus- Our bi-culturism as a source of competitive advantage

Our Europe Technology Connections

T’Sou-ke First Nations Project (video)

Summing up• Kaitiakitanga is about sustainable (intergenerational);

– Economic

– Environmental

– Social, and

– Cultural development

• Central government policy– Fair and equitable to all New Zealanders (carbon pricing – the ETS)

– Complimentary measures

• Sustainable growth and development of the Maori economy is important for all New Zealanders

• Maori have an important and unique leadership role in sustainable development in New Zealand

• Worlds best knowledge and partnerships are a key enabler of this strategy

Contact usChris Karamea InsleyChairman and Project ManagerKaitiakitangaPrincipal37 Degrees SouthThe strategy thought leaders and experts in sustainable development

Phone: +64 21 972 782Email: ckinsley@37ds.comSkype: chris.karamea.insley