Hon Simon Watts
Minister for Energy
Minister of Climate Change

Energy and Climate Change Minister Simon Watts is welcoming a Memorandum of Understanding by Genesis Energy and Carbona to produce torrefied wood pellets with the potential to replace coal with biomass at Huntly Power Station.

“This Memorandum of Understanding is an encouraging step towards affordable, secure and sustainable energy that supports economic growth,” Mr Watts says.

“Renewable, storable fuels like torrefied wood pellets are a promising alternative to coal that could keep the lights on in dry years while contributing towards our goal of net-zero emissions by 2050.

"The Government created the woody bioenergy taskforce as part of our Emissions Reduction Plan to encourage private investment into this market, including the potential for export.

"This MOU follows a similar agreement between Foresta and Genesis Energy in February, which shows growing momentum in the sector.

“This is a win-win for energy and the environment.

“Affordable, secure energy is a crucial part of the Government’s plan to grow the economy.

"I look forward to seeing Genesis and Carbona turn this agreement into action and developing this important new energy supply chain.

Notes:

Carbona (NZ) is a privately owned New Zealand company specializing in transforming biomass into a renewable energy source.

Torrefied wood pellets are a type of biomass fuel that can replace coal as a like-for-like input for energy generation. This process involves heating biomass, such as wood, to temperatures between 200 and 320°C in a low-oxygen environment. During torrefaction, moisture and volatile compounds are removed, resulting in a dry, energy-dense product known as torrefied biomass or bio-coal.

Genesis Energy has a publicly announced target of supplying 300,000 tonnes of biomass fuel to displace coal generation at the Huntly power station by 2028.

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