Regions to benefit from Government’s bioenergy push

REGIONAL BOOST: Minister for Energy Hon Simon Watts, left, with East Coast MP Dana Kirkpatrick in Kawerau. Photo supplied

News Editor

Opportunities in renewable energy and regional development have increased for regions following the Government’s release of the Wood Energy Strategy and Action Plan and a Government Statement on Biogas.

East Coast MP Dana Kirkpatrick says the initiatives aim to accelerate the use of bioenergy across New Zealand, with a strong focus on regions where forestry and land-based industries are central to the economy.

“This is great news for the Eastern Bay of Plenty, which is leading the charge in this space with Foresta recently announcing its new wood pellet plant and 50 promised jobs in Kawerau,” she said

“Forestry waste like woody debris has long been a challenge for our region—clogging waterways and damaging infrastructure. Now, we have the opportunity to turn that problem into a solution by creating a market and destination for this material.”

“These initiatives signal a strong commitment to diversifying New Zealand’s energy mix and unlocking the potential of bioenergy—particularly in regions like ours,” she said.

Foresta has proposed that a consistent supply of wood pellets to Huntly Power Station could be a viable option to offset issues around coal supply and reliance, while maintaining necessary power generation levels.

Led by Minister for Energy Simon Watts and Forestry Minister Todd McClay, the Wood Energy Strategy outlines a vision to scale up the use of wood residues from forestry and manufacturing as a clean, affordable energy source for industrial heat and electricity generation. This could replace up to 40 percent of fossil-fuelled process heat by 2050 and significantly reduce emissions.

“This strategy opens the door to meaningful opportunities for in-region forest owners, processors, and local businesses to actively participate in a growing and future-focused energy sector,” Ms Kirkpatrick said.

The Government has committed $3 million in co-funding for wood energy aggregation facilities and $6 million in repayable grants for manufacturing infrastructure, with applications opening this week through EECA.

The Government Statement on Biogas sets out actions to support the growth of biogas as a renewable energy source, including regulatory improvements and investment pathways.

“Biogas presents another exciting opportunity for our region, particularly in agricultural and waste management sectors. It’s a clean, local energy solution that can help reduce reliance on imported fuels and support our climate goals,” she said.

“These strategies are about more than just energy—they’re about creating sustainable jobs, strengthening our economy, and ensuring our communities are part of New Zealand’s low-emissions future.”

Support the journalism you love

Make a Donation