Foresta has secured a critical 10-year wood supply agreement to underpin production from its planned low emissions torrefied wood pellet manufacturing plant at Kawerau, New Zealand. Source: Timberbiz
New Zealand’s largest forestry services company, PF Olsen, has agreed to supply 150,000 tonnes of logs, stumps and slash sourced from sustainably managed, Forest Stewardship Council accredited forests.
“This is another significant step forward for our manufacturing plant with the supply representing around 61% of the total quantity of raw feedstock required for Stage 1AA and 1A of the plant,” said Foresta Managing Director Ray Mountfort.
The plant will produce torrefied black wood pellets which are a seamless drop-in replacement for coal as a fuel source in boilers without any loss of energy intensity while also significantly reducing carbon emissions. A recent Genesis trial at Huntly power station using similar pellets reduced emissions by at least 90%.
Foresta plans to invest some $300 million building the plant which at full production will employ more than 100 workers.PF Olsen is responsible for planting around 30% of all new forestry in New Zealand as well as managing over 160,000 ha in New Zealand.
“We’re excited to be partnering with such a respected and significant player in the New Zealand forestry industry.
“The supply agreement represents another piece in the jigsaw which means, pending funding, we can proceed with confidence with our plans to develop our manufacturing plant and begin construction later this year.”
Foresta last week announced the signing of a 30-year lease (with a 20 year right of renewal) on a 9.6 ha property in Kawerau with Putauaki Trust.
Foresta has also secured an off-take agreement with South Island energy distribution company Tailored Energy & Resources Ltd to supply 65,000 tonnes of pellets annually to its industrial customers and a harvesting contract with Silvertree Biomass Solutions.
The planned plant will also produce natural pine-based chemicals (rosins and terpenes) from pine trees which can replace petroleum sourced chemicals. These are used in everyday items including flavours, fragrances, chewing gum, paint, ink and tyres.
