Hawke’s Bay’s forestry waste could be transformed into commercial biofuel with demand for biomass set to grow as the region makes the switch to clean energy.
A new report, published today by EECA (the Energy Efficiency and Conservation Authority), shows the significant role currently unused forestry residues could play as the region reduces its reliance on fossil fuels.
Up to 94% of the region’s energy needed for heat used in the meat, industrial and commercial sectors could be met by local biomass.
The Hawke’s Bay Regional Energy Transition Accelerator (RETA) report provides insight and recommendations that will help streamline technology and infrastructure investments for local businesses and energy suppliers and cut carbon at the same time.
“Forestry owners and biomass suppliers in Hawke’s Bay can expect significant demand for wood fuel as the region looks toward new, renewable energy solutions for industrial processing,” said EECA Group Manager Delivery and Partnerships, Richard Briggs.”
“Hawke’s Bay is a forestry-rich region with a lot of unutilised wood residue – it is clear there is significant commercial opportunity for forest owners. Locally sourced biomass for industry will be a win-win for the region; creating a market for the product means there will be less residue left on hillsides, increased regional energy security, and a renewable, cost-efficient fuel.”
The Hawke’s Bay RETA covers 44 sites which consume 2,117 TJ of energy and produce 121,000 tonnes of CO2 each year – almost exclusively from piped gas. The report shows that those who can transition sooner will reap the benefits given the volatility of gas pricing.
“Supporting these installations by 2035 will require small changes to local electricity distribution business (EDB) networks, increasing electricity demand by 23GWh per year, and demand for biomass by 160,000 tonnes per year,” said Briggs.
“All of these projects and ongoing energy requirements increase opportunities for employment in the region.”
Energy efficiency and demand reduction are key parts of the RETA process – which can lead to significant costs and energy savings alongside addressing the need for grid resilience to support increased electrification in the region. Investment in demand reduction will meet 16% of process heat demands in Hawke’s Bay, saving between $40M and $44M in avoided new electricity and biomass infrastructure.
For businesses on the demand side, Briggs noted programmes like RETA help with an increasing expectation domestically and within export markets for cleaner products and services.
“Using information from our RETA programme, businesses can prepare for the future understanding the process heat energy and carbon saving opportunities that are in the pipeline both now and beyond 2030.”
The report includes input from the Hawke’s Bay Regional Economic Development Agency, Transpower, Centralines, Firstlight and Unison, local biomass suppliers and forest owners, electricity generators and retailers, and medium to large industrial energy users.
“It highlights opportunities to create greater resilience amongst some of Hawke’s Bay’s key sectors, such as forestry, through identifying areas for potential diversification.”
This Hawke’s Bay RETA report is the culmination of the planning phase of the RETA programme. It provides the region’s energy users and suppliers with information and tools for developing and implementing their own energy transition plan.
“There are some very promising projects already under way in region,” said Briggs.
Hawke’s Bay Regional Economtic Development Agency CEO Lucy Laitinen said she is pleased with the report’s findings.
“Businesses are telling us that they are suffering from high input prices, particularly energy costs. The forestry sector has challenges around its social license to operate alongside declines in the value of exports and productivity in the sector. If we, as a region, can act on the findings and join supply and demand we could create a real win-win for industry and the environment in Hawke’s Bay,” Laitinen said.
Hawkes Bay Forestry Group Biomass committee chair and general manager of the Te Awahohonu Forest Trust Matt Croft said the RETA process has been pivotal for the Hawkes Bay Forestry Group in recognising the regional biomass opportunity.
“While forest owners knew of the potential demand for sustainable biomass, it was the RETA process that revealed the true scale and the potential value by bringing all the parties together. Forest owners are now excited to support Hawke’s Bay’s transition to a low-carbon economy,” said Croft
Read the full report:
Hawke's Bay Regional Energy Transition Accelerator
Additional information
Process heat is the energy used as heat mainly by the industrial and commercial sectors for industrial processes, manufacturing, and warming spaces. Some process heat emissions can be reduced by redesigning the underlying processes, but decarbonising the remaining heat demand will require switching from fossil fuels to low-emission fuels, such as wood fuels in boilers or electricity in electric boilers or heat pumps.