Sort out bioenergy, industry tells Government

(Carbon News 8 December 2016)

THE DITCHING of plans for a large geothermally driven wood-processing plant in Northland shows why the Government must sort out New Zealand’s bioenergy plan, the industry says.

The project – part of the Government’s regional growth plan for Northland and identified as a potential source of biofuels for Air New Zealand – is being shelved, despite a feasibility study saying there was “real opportunity” for it.

The regional development agency Northland Inc, which had been pushing the idea, says that uncertainty over electricity pricing and concerns about log supply are the reasons why it is putting the project on ice.

“While the study does identify potential, we have decided not to continue with further investigations at this stage,” said Northland Inc chief executive Dr David Wilson.

“This is in part due to uncertainties arising from the Electricity Authority’s Transmission Pricing Methodology review and because of concerns raised by industry that need to be addressed.”  

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