Trees in the tank – NZ’s energy future?
Within 30 years, more than a quarter of New Zealand’s energy needs and nearly a third of our transport fuels could come
from energy crops and materials that are currently wasted.
“Wood pellet burners are growing rapidly in popularity and companies around the country are increasingly using biodiesel
in their vehicle fleets. But these are just the first baby steps of what will become one of the country’s biggest
industries,” says Bioenergy Association (BANZ) chairman Rob Mallinson.
“The processing plants needed to convert fuel crops and wastes from pine plantations into vehicle fuels will alone
require an investment of around $6 billion.”
Releasing the country’s first bioenergy strategy in Wellington today, he said bioenergy had the potential to make a
greater contribution to economic growth than many other industries.
“It will provide new and profitable income streams for land and forest owners and new sources of sustainable energy for
consumers and industries. But at present, it barely features on the national radar.
“Undoubtedly, bioenergy in its various forms will one day replace much of the fossil energy we use today, but in the
short-term fossil fuels are cheaper. We therefore need leadership from government to give investors and customers the
confidence they need to commit to new technologies and fuels.
“With the right policies, 25 per cent of New Zealand’s energy needs will come from biofuels by 2040, giving us energy
resilience as well as a real competitive advantage. Without them, we estimate the figure will be less than 10 per cent,
including very little transport fuel.
“On the reasonable assumption that by 2040 fossil fuels will be very much more expensive than they are now – and their
use much less acceptable in overseas markets – the failure to capitalise on our outstanding bioenergy opportunities
would cost our country dearly.”
The strategy calls for the government to lead by example – such as by directing schools and hospitals to use wood-based
fuels for heating and for government vehicle fleets to convert to biofuels. The emission trading scheme should send
price signals that favour sustainable energy options and there should be an assurance that the Biodiesel Grants Scheme
will continue.
The strategy is co-authored by the Bioenergy and Forest Owners Associations and has the support of the key organisations
involved in the forestry sector.
Forest Owners Association chief executive David Rhodes said New Zealand has large tracts of land suitable for growing
energy crops.
“Wider use of bioenergy has the potential to reduce our dependence on fossil fuels and imported oil, improve national
energy security, provide new jobs and reduce carbon emissions by around 4.5 million tonnes a year. It will also
strengthen the country’s clean-green credentials in food, fibre and tourism markets.
“Most impressively, these benefits will largely arise from the better use of land that is today under-utilised and from
plant materials that largely go to waste.”
Of all New Zealand’s biofuel resources, woody biomass – from forests grown both for wood and fuel – has the highest
potential for wealth creation. Agricultural sources include crops like canola, grasses such as miscanthus and residues
such as straws, poultry litter and dairy and piggery effluent.
Municipal, agricultural and industrial residues and wastes may be burnt to produce useful heat or digested to produce
methane, and algae can be grown as a by-product of waste treatment to create a feedstock for biodiesel production.
ENDS