Bioenergy Association encouraged by Govt support for biofuel

26 July 2013

Bioenergy Association is encouraged by the Government’s support for biofuels

The announcement by the Government of Primary Growth Partnership funding of $6.75 million) to investigate producing biofuels from forestry residues is encouraging and supports the forestry and wood processing sector strategy that identified that some emerging biofuel technologies can provide attractive additional revenue streams for existing businesses.

Stump to Pump partners Norske Skog and Z Energy will match funding of $6.75 million, bringing the project’s total funding to $13.5 million.

Speaking today, Mr Brian Cox, Executive Officer of the Bioenergy Association of New Zealand (BANZ) said that “BANZ welcomes the involvement of the Government in the commercialisation of a transport biofuels sector. Work undertaken by BANZ and the wood sector shows that the emerging technologies for producing transport biofuels can be financially attractive as new enterprises. However these would be even more attractive as bolt-ons to an existing business such as Norske Skog who already have the infrastructure and technical capabilities to extend into these new products.”

Mr Cox added “BANZ shares Norske Skog's belief in the need to pursue new businesses from our international comparative advantage in growing trees. Having new products to support the revenue from existing traditional wood products will strengthen the financial viability of existing businesses. A more resilient wood processing sector from additional added value processing of biomass within New Zealand will create more employment and improve the economic strength on NZ Inc.”

“In an economic environment where jobs in traditional sectors are fast disappearing we encourage the wood processing sector to look at these new products.”

“The research being undertaken by Norske Skog and Z Energy mirror what has already been recognised internationally where the pulp and paper sector are leading the way as they have the expertise and experience in extracting chemical products from wood.”

“The emerging transport biofuels builds on the use of wood fuel for the production of heat which is already economic in many situations. The ability of wood processors to produce a range of biofuel products will strengthen their financial viability and assist transition New Zealand into a post – petroleum era.”

Mr Cox added that “BANZ, as a sector association, has been undertaking its own analysis of the opportunities and has led the development of an industry driven Bioenergy Strategy. The Strategy indicates that on an economic basis 25% of NZ energy supply could be supplied from bioenergy by 2040. This would be a $6billion industry for New Zealand and would provide jobs and economic stimulus throughout New Zealand.”

About the Bioenergy Association of New Zealand (BANZ)
BANZ was established in 2001 to promote and coordinate the development of a bioenergy industry in New Zealand. BANZ provides a central focus point for liaison with Government agencies, the dissemination of information amongst the industry and long-term positioning of bioenergy into New Zealand's energy system. Members include anyone with a commercial interest in bioenergy – biomass resource owners, wood processors, facility owners, equipment and service providers, energy suppliers, energy researchers, consultants, manufacturers and investors.

For more information on the Bioenergy Association of New Zealand look at:
• www.bioenergy.org.nz for information on the association and the sector.
• www.biogas.org.nz for information on the production and use of biogas in New Zealand.
• www.liquidbiofuels.org.nz for information on the production and use of liquid biofuels in New Zealand, particularly as a transport fuel.
• www.woodpellets.org.nz for information on wood pellet production and use in New Zealand
• www.usewoodfuel.org.nz for information on the sourcing, availability and use of wood fuel in New Zealand.
• www.bioenergyprojects.org.nz for the location and information on the full range of bioenergy projects in operation throughout New Zealand. The interactive search capability also provides information on the people who designed and constructed these projects.

ENDS

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