The NZ Bioenergy Association is urging the energy sector and political leaders to unite in harnessing the vast, untapped potential of forestry slash — a move it says could help ease New Zealand’s electricity supply crunch. Chief executive Brian Cox says millions of tonnes of wood are left to rot in forests each year, despite its value as a low‑cost, renewable fuel capable of keeping “companies operational, boilers running and lights on.”
“Slash is valuable biomass that is just not being picked up and is being left in the forest,” Cox told RNZ. “We need to be picking up the residue from our harvesting as well as the residue from wood processing — they’re a valuable fuel for making electricity.”
As it stands, forest residue sells for about $16 per gigajoule — less than half the cost of heat from electricity — and Cox says momentum for biomass, also known as black pellets, is building. “The biggest way that’s coming is Genesis Energy is looking at taking that biomass and making it into black pellets, which they would use in the Huntly Power Station for making electricity.”
He warns that without a national biogas strategy, New Zealand risks overlooking a crucial energy resource – at a time when the country’s manufacturing industry is grappling with the world’s highest energy prices. Cox is calling for the forestry supply chain, owners and energy leaders to work together, including pricing slash as a resource to “create incentives to clear debris.” “What we’ve got to do is work together and get the energy companies to really think about what they can do for customers from the full range of energy resources that we do have in New Zealand,” he said.
Research is also underway at Scion, where scientists are developing technology to convert forest biomass into biofuel for ships. Cox cautions that without decisive action, rising electricity and gas costs could lead to more businesses closing. “Using forest biomass to produce energy can free up electricity and natural gas for other higher-value uses,” he said.
The push for biomass comes as New Zealand explores other wood-based fuels. Late last year, a study backed by Air New Zealand and US‑based LanzaJet found that sustainable aviation fuel (SAF) made from woody waste and low‑value wood products could generate NZ$430 million in annual revenue and create major employment opportunities in the North Island. However, the report warned that “significant investment” would be needed and called for government backing to scale the industry.
Air New Zealand’s chief sustainability and corporate affairs officer, Kiri Hannifin, said the findings were “promising” and could reduce the airline’s long‑term reliance on imported jet fuel. “These initial findings support that alternative jet fuel can be produced here in Aotearoa from our locally‑grown woody waste, which is very positive for a country that is heavily reliant on long‑haul aviation and trade and currently imports 100% of its jet fuel,” Hannifin said.
- To learn more about the push to use forest and woody waste to create SAF, click here for Wood Central’s special report.
