Liquid Fuel from Wood Can it be Done on a Small Scale in the New Zealand Wood Processing Industry?

Authors: Chris Penniall, Chris Williamson
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2011, Issue N.Z.J.For. 56(2) 2011, pp 9-14, Aug 2011
Publisher: New Zealand Institute of Forestry

---

Abstract: Introduction This article discusses the feasibility of producing liquid fuels in New Zealand using waste wood as a feedstock. There are strong reasons to investigate and develop plants to produce biofuels from wood in New Zealand with the first being the significant forestry based activity in our country. New Zealand’s large annual wood harvest produces significant residues and it is estimated there are around 5 million m³ available per year that is not already used for energy (Hall & Gifford, 2007). The use of wood as a feedstock for making liquid fuel is ultimately driven by the need to reduce fossil fuel use. The government has signalled this need through different policies relating to liquid biofuel. A biodiesel grant scheme was recently implemented starting on 1 July 2009 with a grant of up to 42.5 c/L for biodiesel for biodiesel producers. The companies that have signed up to the scheme base their feedstock on tallow, cooking oil, or rapeseed oil. Although this is a different base feedstock to wood residue one would be hopeful the grant would still apply. New Zealand has also introduced an Emissions Trading Scheme (ETS) that currently caps the cost of emissions at a maximum of $NZ25/tonne of CO₂ equivalent emitted. On its own this is too low to influence decision making on renewable fuels projects. It is also not entirely clear how it would be applied to a wood to biofuels project, apart from a potential carbon cost associated with some fossil fuel use in the supply chain. However, in conjunction with the biodiesel grant, a cost on emissions from fossil carbon may considerably offset biofuel costs in the future if fossil fuel prices increase as a result. Biofuels from woody biomass also has the potential to replace some of our importation of fossil fuel. This has benefits in terms of local revenue generation and job creation within New Zealand. It also disconnects us from the damaging sharp rises in international oil prices that can occur. All these factors make producing liquid fuel from wood in New Zealand a topic well worth investigating further.

---