Hon Stuart Nash

Minister for Forestry

A new partnership between the Government and Oji Fibre Solutions could boost the development of sustainable wood products, hydrogen and bio-fuels at the Kinleith Mill near Tokoroa, creating jobs and reducing emissions across the economy Forestry Minister Stuart Nash announced today.

“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 bio-energy and high value bio-chemicals through the development of an advanced bio-economy manufacturing cluster,” 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 bio-economy, 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 bio-economy.

“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 off-shore 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 will help the sector decarbonise, support local job creation and drive the circular economy,” Stuart Nash said.

Media contact: Lukas Clark-Memler 020 409 71161

Notes for Editors:

· A 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.

· Oji Fibre Solutions’ Kinleith site is New Zealand’s largest industrial site, located on 2,400 hectares of land near Tokoroa.

· The site could also help to spur bio-innovation and entrepreneurship through facilities piloting and commercialising new bio-products.

· The feasibility study is expected to be completed in early 2023, after which decisions on next steps will be taken.

· The $2 million study will be funded jointly, with the New Zealand Forest Service contributing up to $1 million.

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