A new partnership between the New Zealand Government and Oji Fibre Solutions could boost the development of sustainable wood products, hydrogen and biofuels at the Kinleith Mill near Tokoroa, creating jobs and reducing emissions across the economy. Source: Timberbiz
“In order to build a low-emissions, high-wage economy, we need to explore innovative and sustainable solutions across all sectors. In the wood processing sector, there is the opportunity to integrate bio-manufacturing, which means producing bioenergy and high value bio-chemicals through the development of an advanced bio-economy manufacturing cluster,” Forestry Minister Stuart Nash said.
“Oji Fibre Solutions is a world-leader in pulp, paper and packaging products, and the Kinleith Mill employs over 500 people in the South Waikato. This joint feasibility study is the perfect opportunity to think differently about the way we process wood in New Zealand, to tap into the bioeconomy, and harness the valuable by-products of wood fibre.
“Throughout this study, we’ll investigate how we can make high-value and sustainable bio-products from wood. This could create high-wage, highly skilled jobs as well as unlocking regional economic opportunities and ultimately building a productive, sustainable and inclusive bioeconomy.
“This partnership is one of the first tangible actions from the draft Forestry and Wood Processing Industry Transformation Plan I launched in August. A key focus of the Plan is how to add value to the forestry sector by processing logs domestically rather than sending them offshore for other countries to extract value.
“The forestry and wood processing sector has significant growth potential, and innovative ways of thinking like this study will help the sector decarbonise, support local job creation and drive the circular economy.”
The joint feasibility study between the New Zealand Forest Service and Oji Fibre Solutions will explore the opportunities to develop the Kinleith Mill to commercially produce wood products such as biofuels – including sustainable aviation fuel – lignin, green hydrogen, bioplastics and fuel pellets.
Costs and economic modelling for an upgrade to Kinleith Mill’s energy boilers, known as the ‘Energy Island’ will also be updated as party of the study, along with investigating opportunities for third-party investment into the bioeconomy.
The NZ$2 million feasibility study will be funded jointly, with the New Zealand Forest Service contributing up to NZ$1 million and is expected to be completed in early 2023, after which decisions on next steps will be taken.
