Bioenergy: A Ready, Cheaper Alternative To LNG

The release of the LNG import investigation confirms what’s already clear. LNG is an expensive energy option.

“The Bioenergy Association welcomes the investigation,” says Executive Officer Brian Cox.

“But we urge the need for a broader energy strategy that includes all technologies, and especially bioenergy. Growing New Zealand’s manufacturing and employment base depends on a stable, secure, and sovereign energy supply. Without it, industry struggles, as energy can make up a third of production costs.”

Cox highlights that the report indicates that LNG’s landed cost is around $18/Giga Joule (GJ), with retail prices likely exceeding $36/GJ.

“In contrast, bioenergy heat from wood residues starts at about $13/GJ, almost 40% cheaper than landed LNG.

“Electricity-based heat can cost as much as $50-$60/GJ for most users, and upwards of $35/GJ even for very large users. This only reinforces the need to use the right fuel for the right application.

“There’s no shortage of biomass for energy use,” Cox said.

“In addition to forest and processing residues, New Zealand exports 20 million tonnes of low-grade logs annually, mainly to China.

“In energy terms this is a lot - it represents 160m GJ of gas.

“For context the whole North Island only uses about 25m GJ of gas. You would need less than 20% of those logs to meet that demand, and could use the rest to make biodiesel, increasing New Zealand’s energy resilience and sovereignty.”

Instead of pursuing costly LNG imports or building more power stations under the ‘electrify everything’ model, Cox says policy should support fuel-use efficiency and value creation.

“Bioenergy from wood residues doesn’t require growing energy crops. It’s a by-product of forestry and wood processing, creating jobs and new business. Integrating forestry into farms improves land management and farm viability.

“Importing LNG does none of this—and only adds cost.”

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