The Government has released its Wood Energy Strategy and Action Plan and a Government Statement on Biogas, signalling its support for New Zealand’s bioenergy sector.
Energy Minister, Simon Watts said diversifying New Zealand’s energy mix with new fuels and more energy sources was a critical step in ensuring long-term energy security.
“With the challenges our energy system is currently facing, finding cost-effective alternatives to power Kiwi industries has never been more important,” Mr Watts said.
Wood energy comes from residues of the forestry and manufacturing sectors and can be used to generate heat for industrial processes and electricity generation, offering an alternative to coal, gas, and electricity.
“The Government’s vision for the future of the wood energy sector is clear: New Zealand will accelerate wood energy as a reliable, affordable and sustainable energy resource for domestic and export markets,” Mr Watts says.
“Launching New Zealand’s first Wood Energy Strategy and Action Plan kickstarts this vision into action. Wood energy could replace around 40 per cent of fossil fuelled process heat by 2050, and displace 300,000 tonnes of coal at Huntly. This would reduce reliance of our energy system on imported fuels and domestic gas and cut down on emissions.
“Wood energy also has significant regional economic growth and employment opportunities, particularly for forest owners and wood processors. If New Zealand’s total demand for wood energy reached 40 Petajoules per year we could see 20 wood pellet mills hiring over 300 people.”
The Strategy, developed with Forestry Minister Todd McClay, sets out six clear objectives, while the Action Plan provides an overview of current and planned work to support the strategy, including new co-funding opportunities.
“Tomorrow, the Energy Efficiency and Conservation Authority (EECA) will release a Request for Proposals for $3 million in co-funding to accelerate wood energy aggregation facilities and I encourage eligible projects to apply. The Government has also committed $6 million in repayable grants to businesses looking at building wood energy supply manufacturing facilities,” Mr Watts said.
“The future of bioenergy in New Zealand is broader than just wood energy. As a renewable energy source, biogas could provide a local, clean solution to our long-term energy needs.
“The industry has been clear that it needs clarity from the Government in order to invest in the biogas market. That’s why today I am also pleased to announce the release of a Government Statement on Biogas, which reaffirms our commitment to the biogas market and sets out key actions we will take to enable its growth.
“We will be exploring investment in new wood energy and biogas projects through the Request for Information to leverage the Government’s energy demand, which was announced recently in response to the electricity market performance review.
“We are also committed to getting the regulatory settings right for biogas investment and reducing barriers to the market’s development – all with the aim of attracting greater innovation and investment in the sector.”
Minister Watts said both the Wood Energy Strategy and Action Plan and the Government Statement on Biogas were great examples of how energy innovation can grow the New Zealand economy by creating new jobs in the regions, bolstering energy security and helping to achieve climate goals.
In a statement, New Zealand’s Bioenergy Association said it was pleased to see Government recognition of bioenergy as an important part of the nation’s future energy mix.
“Wood energy is the largest untapped ready-to-use source of energy across New Zealand, far bigger than many oil fields. This recognition from Government will encourage the use of wood energy to address the emerging energy supply crisis,” said Association Executive Officer, Brian Cox.
“We at Bioenergy Association see this as good news: it brings long-needed visibility to bioenergy, reinforces regional jobs in forestry and waste sectors, and strengthens our circular economy potential.
“However, the real work now begins. We need policy clarity, funding certainty, and implementation frameworks that allow wood energy and biogas to scale, not just be talked about. Bioenergy Association stands ready to collaborate with government and industry to make it happen,” said Mr Cox.
View the Wood Energy Strategy.pdf and Government Statement on Biogas.pdf.
