New Zealand Government Unveils Wood Energy Strategy and Action Plan to Diversify Energy Mix and Boost Economy

Strategic Insights -

New Zealand's Government has taken a significant step towards ensuring the country's long-term energy security by releasing its Wood Energy Strategy and Action Plan, alongside a Government Statement on Biogas. The move aims to accelerate wood energy as a reliable, affordable, and sustainable energy resource for domestic and export markets. The strategy outlines six clear objectives, including reducing reliance on imported fuels and domestic gas, cutting down on emissions, and creating regional economic growth and employment opportunities.

Key Takeaways:

  • The Wood Energy Strategy and Action Plan sets out to accelerate wood energy as a reliable, affordable, and sustainable energy resource for domestic and export markets.
  • Wood energy could replace around 40% of fossil fuelled process heat by 2050, and displace 300,000 tonnes of coal at Huntly.
  • The strategy aims to reduce reliance on imported fuels and domestic gas, cut down on emissions, and create regional economic growth and employment opportunities.
  • The Government has committed $6 million in repayable grants to businesses looking at building wood energy supply manufacturing facilities.
  • 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.
  • The Government has also committed to exploring investment in new wood energy and biogas projects through the Request for Information to leverage the Government's energy demand.
  • Wood energy also has significant regional economic growth and employment opportunities, particularly for forest owners and wood processors, with 20 wood pellet mills hiring over 300 people if New Zealand's total demand for wood energy reached 40 Petajoules per year.

Statistics:

  • 40% of fossil fuelled process heat could be replaced by wood energy by 2050.
  • 300,000 tonnes of coal could be displaced at Huntly.
  • $6 million in repayable grants have been committed to businesses looking to build wood energy supply manufacturing facilities.
  • $3 million in co-funding will be provided through the Energy Efficiency and Conservation Authority (EECA) to accelerate wood energy aggregation facilities.
  • 40 Petajoules per year is the total demand for wood energy required to see 20 wood pellet mills hiring over 300 people.

Sources:

  • New Zealand Government
  • Ministry of Business, Innovation and Employment
  • Energy Efficiency and Conservation Authority (EECA)
  • Forestry Minister Todd McClay
  • Mr Watts