Sustainable biomass

New Zealand bioenergy for a clean future

New Zealand has enough woody biomass feedstock to displace all of the coal that is currently used, and it is sustainable. Anything we can do with fossil fuels, we can replace with bioenergy.

Long term supply of biomass is a key concern. New Zealand has about a million hectares of unproductive land growing scrub. That land could be converted to growing woody biomass from conventional forestry rotations or shorter rotations. This could provide a much larger long-term supply and support demand for coal, gas and marine fuel replacements.

 Does NZ have enough biomass to extend usage into production of liquid fuels?

We have enough biomass available to start this journey and we have the potential to grow more biomass on unproductive land in New Zealand, beyond our current planted forests.

Why bioenergy research?

There are four main drivers of why the Bioeconomy Science Institute has investigated bioenergy options in New Zealand:

  • Climate change - reducing greenhouse gas emissions
  • Energy security and resilience
  • Transport of our export goods to markets
  • Local economic development - growing and producing energy onshore to create GDP

Energy demand is a frequent topic in the news - particularly around cost, carbon emissions and availability.

Woody biomass in New Zealand is a significant, untapped resource that is widely available. It could make a much larger contribution to the country's energy needs than it does now.

Most of our biomass resource is derived from post-harvest residues. The Bioeconomy Science Institute (formerly Scion) has summarised New Zealand's residual biomass resources, with projections of the volume of these resources out until 2049-2053.

Our current use of this type of biomass is around 290 000 green tonnes per annum, which is expected to increase as coal is replaced as a fuel for heat supply.

We anticipate that New Zealand could produce between 15 to 20 million green tonnes per annum of biomass from forest residues.

Short Rotation Forestry: growing biomass forests for bioenergy

Forests planted specifically as a source of biomass for biofuel feedstock is another way we can ensure we have enough clean, renewable sources of energy over the coming decades.

These bioenergy forests, unlike traditional timber production forests, could benefit from shorter rotation length; known as short rotation forestry.

Short rotation forestry as a feedstock for bioenergy has the potential to replace 6% of New Zealand’s annual fossil fuel demand using less than 1% of its land area.

From our research, we provide recommendations for landowners, forest investors and government agencies for how to approach establishing bioenergy forests with shorter rotation length.

More than 20 years of research

Growing a biofuelled New Zealand

The Bioeconomy Science Institute (which Scion has become part of) has been working to increase renewable energy production and energy security for New Zealand, by growing our ability to produce sustainable bioenergy and liquid biofuel products.

"Biofuels could make a substantial contribution to meeting New Zealand's greenhouse gas (GHG) commitments and provide transport fuel independence."

In 2018 we produced the biofuels roadmap, outlining what a large-scale biofuels industry could look like here.

A biofuelled future is unlikely to happen by itself. Leadership at a national level is needed – there has to be national commitment to do things right. The investment needed is large and stakeholder industries will need a degree of certainty when committing to feedstock and processing options, as well as taking ownership of delivering their parts of the value chain.


Sustainable aviation fuel

Sustainable aviation fuel for New Zealand

Biofuels are the only viable option for sustainable long-haul aviation as electric- and hydrogen-powered options are currently impractical.

The Bioeconomy Science Institute has been working with Air New Zealand, LanzaTech, LanzaJet, and Z Energy to develop a viable pathway from woody biomass to sustainable aviation fuels (SAF) in New Zealand. This initiative will help New Zealand to reduce our domestic greenhouse gas (GHG) emissions and meet international commitments around sustainable aviation fuels (SAF). A local SAF industry could lead to an estimated 6,400 infrastructure development jobs and a similar number of direct and indirect permanent jobs.

Wood chip biomass

Wood chip biomass

Bark residues can be used as bioenergy

Bark residues can be used as bioenergy

Briquettes made from bark used to power a steam engine.

Briquettes made from bark used to power a steam engine.

Bioenergy barriers

NZ has the resources to transition to renewable energy.

NZ has the resources to transition to renewable energy.

Our planted forests are the single largest biomass resource.

Our planted forests are the single largest biomass resource.

We've had access to cheap coal and gas for a long time, creating reliance on these energy sources. Barriers to bioenergy deployment in New Zealand stem from the unfamiliarity with wood resources, and the cost issues related to transitioning to bioenergy.

Government legislation and rising costs

Government legislation is aimed at reducing coal usage and the rising cost of carbon and gas are creating demand for wood and other forms of industrial energy, despite the challenges posed by sunk costs in existing capital e.g. expensive boilers. This is slowing the transition to bioenergy.

“A sustainable forest management strategy aimed at maintaining or increasing forest carbon stocks, while producing an annual sustained yield of timber, fibre or energy from the forest, will generate the largest sustained mitigation benefit.”
IPCC

Carbon debt or surplus?

Internationally - particularly in Europe - there is the concept that creating energy (heat, electricity or liquid fuels) from woody biomass creates a carbon debt. This view is based on certain assumptions that are largely not applicable in New Zealand.

Clean, scalable and sustainable

Ultimately, a transition away from reliance on imported fuels to resilient, locally produced bioenergy is possible. Our research shows what is possible with current and future resources, and approaches to drive sustainable energy growth in New Zealand.

Woody biomass from NZs planted forests is our single largest biomass resource, with the most potential to expand

Woody biomass from NZs planted forests is our single largest biomass resource, with the most potential to expand

"Energy from forests stands apart because it is renewable, storable and consistently available, while actively recycling carbon from the atmosphere. Wood is a remarkably versatile fuel that can deliver heat, power and renewable gases or liquids, providing a low‑carbon substitute for fossil fuels, potentially using much of the infrastructure we already have."
Peter Hall, Senior Technologist - Bioeconomy Science Institute

What's Next?

Find an appropriate marine biofuels image??

Find an appropriate marine biofuels image??

Sustainable marine biofuel

Sustainable fuel solutions are in demand across the shipping industry, with major exporters increasingly concerned about carbon emissions linked to their products.

Shipping comprises nearly 45% of New Zealand's GDP, and the technology new startup, Biowave, offers is sustainable. Scientists at the Bioeconomy Science Insitute have developed this new marine fuel at a lab scale. At Biowave we’re tackling this challenge head on by taking world-class science off the lab bench and into the real world.

"Biowave’s ambition is to accelerate the multi-fuel transition the sector needs by delivering drop-in marine biofuels, cutting emissions with existing vessels to help the sector decarbonise at pace."

More bioenergy stories

Start-up venture Biowave was launched in August 2025.

Large-scale biofuel production and its use within New Zealand can happen.

MOTAT steam tram powered by trees - Bioeconomy Science Institute scientists transformed wood waste into a coal replacement.

Home-grown bioenergy

New Zealand, with its abundance of hill country, is suitable for growing forests and its expertise in fast-growing planted forests could become a world leading example of sustainable bioenergy.

Wood drying for optimising supply chains for bioenergy

Optimising the biomass fuel supply chain is important to both maximise the greenhouse gas (GHG) reduction and manage the overall costs.

Certification of forest biomass

There are various international schemes for certification of biomass. New Zealand needs to be aware of the limits and understand how to operate within these classifications.

For more information

Contact Peter Hall

Bioeconomy Science Institute Senior Technologist

peter.hall@scionresearch.com

Acknowledgements

Research as part of the Bioenergy portfolio was funded by MBIE, MPI and SSIF.

Paul Bennett

Bioeconomy Science Institute Portfolio Leader - Bioenergy

paul.bennett@scionresearch.com