Plans to upgrade one of New Zealand’s largest paper mills to create a bio-hub “have merit and warrant further investigation,” according to a new study published last week, supporting the massive upgrade “in principle.”
The latest study, the second stage of a multi-stage research project produced by global engineering firm Wood Beca, comes after a six-month initial study last year that examined the feasibility of developing a Bio Hub at the Kinleith mill. This project, in turn, explored the potential for a manufacturing hub at Kinleith in Tokoroa alongside its pulp and paper mill, with a new, modern sawmill at its centre.
It found that an investment of between NZ $900m and $1.7 billion in the Kinleith bio-hub, owned by Oji Fibre Solutions, had the potential to contribute between NZ $2.5b and $4.9b to NZ’s total economic activity during the three year construction period alone.
Wood Beca’s findings come after Chris Hipkin’s outgoing government provided tacit support to upgrade the site, which it regards as a strategic asset for the country.
Last year, Wood Central reported that the upgrade would support 200 additional jobs, generate more than $566m in GDP annually and reduce emissions by 65,000 tonnes of CO2, according to outgoing NZ Forestry Minister Peeni Henare.
“This could help make upgrading the Kinleith Mill a reality if it can raise the funds needed,” according to Minister Henare, who allocated NZ $57m as part of the NZ’s Forestry and Wood Processing Package last year. Before adding, “The government wants to see more logs processed onshore, help move our forestry sector from volume to value, lift our economic performance and resilience and create high-wage jobs in our regions.”
The proposed mill comes as global forest producers using state-of-the-art tech and material science to make the most of wood to create higher value and longer-lasting forest products. “I’m excited by the potential of this project to help build a high-value, high-wage and low-emissions economy in line with the vision set with the sector,” Henare said last year.
The mill is one of New Zealand’s most strategic question
The mill, one of eight still in operation New Zealand-wide, produces 330,000 tonnes of paper grades per year and 265,000 tonnes of bleached pulp.
Kinleith Mill’s co-generation plant generates around half of its electricity requirement, with the mill purchasing the balance from the grid.
At the time, Oji Fibre Solutions CEO Jon Ryder said the upgrade was a fantastic opportunity to explore “increasing value from the wood we grow by making a mix of products, like solid woo,” packaging, wood-based chemicals, and bioenergy.
Wood Central understands that the proposed Bio Hub will create a sustainable pathway for investment and develop a regional bioeconomy cluster that supports the growing demand for products derived from wood fibre – providing commercially competitive fibre residues for manufacturing and energy production.
In addition, it could also include a state-of-the-art large-scale sawmill, enabling the production of primary solid wood products and engineered wood products, including cross-laminated timber products, as part of New Zealand’s push to become a global hub for low-carbon exports.
- To learn more about the project, visit Wood Central’s special feature.
