Logging residue

Further funding for the ‘stump to pump’ programme will come from research partners Norske Skog and Z Energy, who will match government funding, bringing the project’s total funding to $13.5 million. Crown research institute Scion’s research and technology expertise will contribute to the programme.

Commercial viability of biofuel plant

Researchers are hoping the stump to pump programme will determine the commercial viability of establishing a modular test plant to process New Zealand forest waste into transport fuel.

Currently, the material left over after harvesting and processing, such as sawdust, bark and harvest residue, has little or no value.

Potential economic benefit

On announcing the funding, Ministry for Primary Industries Acting Director-General Roger Smith said, “If this material can be used commercially, then we can maximise the value of every tree harvested to the benefit of our primary sector and our economy.”

“If this technology can be commercialised, the estimated economic benefit for New Zealand over the next 20–25 years is an annual increase in GDP of up to $1 billion and the creation of 1200 direct jobs.”

“The biofuel plant that we’re investigating could potentially process around 50 000 tonnes of forest waste per annum and cost in the order of $80–100 million,” says Peter McCarty of Norske Skog. “Such a plant would take the industry to the next level in its goal of commercialising this new technology.”

Opportunity for diversification

In a press release from Scion, General Manager for Sustainable Design Dr Trevor Stuthridge says the stump to pump programme is a promising initiative that could lead to greater energy security for New Zealand from renewable plantation forestry resources. It also creates a new opportunity for the New Zealand forestry and wood processing industries to diversify their business into energy markets.

“New Zealand currently imports most of its transport fuels, which are responsible for 20% of New Zealand’s greenhouse gas emissions.

“At the same time, New Zealand is not extracting the full value of its forests, with millions of tonnes of harvest and wood processing residuals returning little value and large volumes of logs being exported with little value add.”

More onshore log processing

Should the biofuels programme eventuate, it would also support the solid wood sector by providing a market for wood processing residuals, leading to greater onshore processing of logs.

“This study is the most significant biofuels initiative in New Zealand’s history – it’s certainly a bold move for the industry, and we are very excited to be involved,” says Dr Stuthridge.

A 2009 Scion-led Bioenergy Options project has already identified how several future forestry scenarios could contribute to a viable biofuels industry for New Zealand.