Accelerating bioenergy in New Zealand

The NZ Government has released its Wood Energy Strategy and Action Plan and a Government Statement on Biogas, signalling its strong support for New Zealand’s bioenergy sector. Hon Simon Watts, Minister for Energy, made the announcement this week at the Residues2Revenues 2025 and Bioeconomy Innovations 2025 joint events.

“Diversifying New Zealand’s energy mix with new fuels and more energy sources is 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 says.

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 alongside my colleague 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,” Mr Watts says. “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.

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,” Mr Watts says.

“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.

“Both the Wood Energy Strategy and Action Plan and the Government Statement on Biogas are great examples of how energy innovation can grow the New Zealand economy by creating new jobs in the regions, bolstering energy security and helping us achieve our climate goals.”

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Source: NZ Government