Wood Energy New Zealand Partnership formed

April 14, 2022
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A partnership between Pioneer Energy and Niagara Sawmilling Company Ltd in the lower South Island of New Zealand has been formed to meet the demands of the biomass market to supply high quality product to the end users, with both organisations bringing together their respective wood fuel supply businesses.

Niagara’s wealth of experience in forestry, procurement, processing and transport coupled with Pioneer’s asset management, operational experience and energy expertise, will ensure both existing and future customers can depend on Wood Energy New Zealand to meet and exceed their service expectations.

Nigel Ellett has been appointed Managing Director in the interim to oversee and ensure the successful transition of each company’s wood fuel businesses to Wood Energy New Zealand.

“The creation of Wood Energy New Zealand is a strategic partnership whose goal is to be the preferred supplier of wood fuel products and comes off the back of growth strategies of both businesses. It’s an exciting time to be in the biomass market” says Mr Ellett.

Significant wood fuel supply contracts are in place with more on the horizon as industrial and process heat customers move away from fossil fuels. From 01 May 2022 Wood Energy New Zealand, will seamlessly transition to meet the requirements of existing South Island contracts and will move towards expanding its operations across New Zealand.

Brian Cox, Executive Officer of the Bioenergy Association said that “Currently around 9% of New Zealand’s consumer energy comes from biomass residues and it is expected that this will triple over the next few years as Government policies to transition from use of fossil fuels for process heat are implemented. While the existing supply of biomass for energy is sound the increased demand for biomass is incentivising companies like Pioneer Energy and Niagara to expand their business.”

It must be something in the water down South as much of the impetus in New Zealand currently in co-ordinating regional supplies of woody biomass and converting fossil fuels to biomass for heat plants of larger industrial operations has been occurring in the lower South Island. Presentations and insights from forest companies, those actively involved in extracting forest biomass and those who have successfully been working with businesses on heat and energy plant conversions and co-ordinating regional supplies of wood residues feature prominently in the eagerly awaited Residues to Revenues 2022 event being run in Rotorua, New Zealand on 26-27 July.

Full details on the event – and associated workshops, can be found here.

Source: Pioneer Energy, BANZ