Plan needed for competing wood demands
Friday 31 May 2019
Capital and fuel costs for new wood or coal boilers are now very close and the company could – were it to be building its Darfield 2 dryer in Canterbury again – do that with wood.
“The problem comes down to the amount of wood,” he told delegates at the New Zealand Minerals Forum in Dunedin this week. Fonterra believes it can get about 15 megawatts of wood into each of its plants, based on the local supply in each region.
At Darfield, that would require 50-60,000 tonnes of green wood “every single year,” he said. That is pretty much all the wood that is available in north Canterbury and would put the firm in competition with panel and board makers in the region.
“This is critical. This is transition engineering. This is about unintended consequences,” he said. “Do you just let the market go and he who can pay the most gets it? Or do you try and make sure that the Rangiora MDF plant can continue to source material?”
The vast bulk of New Zealand’s carbon emissions come from road transport and agriculture. Only about 5 percent comes from power generation and about 15 percent from heavy industry. The government is aiming to plant a billion trees in the next decade to help absorb emissions while also increasing the base of available waste wood that can be turned into renewable industrial fuel longer term.
Nelson-based Azwood Energy has said there is ample forestry waste in the hills that could be used, but that demand is being held back by the government’s emphasis on electrification of industry.
Fraser Jonker, chief executive of Alexandra-based Pioneer Energy, told the conference that there isn’t enough wood today and coal is likely to remain an important part of the industrial fuel mix for the next 20 years. His firm, which operates industrial heat plants in Timaru and Dunedin, is already competing with other wood processors for fuel for clients.
But he said more waste wood can be sourced from the forests if there is sufficient demand at scale to build up those logistics chains. Wood is almost competitive with coal in Dunedin now, he said, and his firm will next year supply the University of Otago with 150,000 gigajoules of wood energy to meet all its heating needs.
The firm is talking with other potential customers in the lower South Island and that demand could be up to 500-600,000 GJ in five years, he said. More >>
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