We welcome your enquiry
We take great pride in everything that we do, control over products and supply allows us to ensure our customers receive the best quality service. Contact us via the form below or on the following email [email protected] to register your enquiry with us.
GENESIS and FORESTA in Biomass Supply Negotiation
10 02 2025Genesis Energy Limited (GENESIS) and Foresta (NZ) Limited (FORESTA) have signed a term sheet to advance negotiations on the supply of torrefied black wood pellets for electricity generation at Huntly Power Station.
GENESIS is targeting a supply of 300,000 tonnes of torrefied black wood pellets by FY28 to reduce or if possible, eliminate, New Zealand’s current dependency on coal for electricity generation at Huntly. GENESIS is working with a number of potential producers in parallel to achieve this target.
FORESTA is building an integrated pine chemical and torrefied wood pellet production facility in Kawerau in the Bay of Plenty. This would be one of the first manufacturing plants of its kind established in New Zealand.
Tracey Hickman, GENESIS Chief Wholesale Officer, says biomass is a key part of GENESIS’ Gen35 strategy to optimise energy storage and flexible generation providing security of supply and grid stability.
“Electricity security for New Zealand depends on having fuel security and fuel diversity. The unique opportunity we have with Huntly is that existing assets are designed to generate power from several feedstocks including gas, coal, diesel and biomass. FORESTA has shown they could be a reliable partner in supplying the type of biomass we need.”
Hickman says the term sheet is non-binding but accelerates GENESIS’ negotiations over price, volume and product quality.
“This agreement marks a significant milestone in FORESTA’s mission to provide sustainable energy solutions for New Zealand. We look forward to supplying GENESIS with a reliable, locally sourced supply of torrefied black wood pellets. Our planned state-of-the-art integrated manufacturing facility in Kawerau will play a key role in reducing reliance on coal, and we are eager to collaborate with GENESIS to support New Zealand’s energy transition to net zero by 2050.“
Hickman noted recognition of GENESIS’ biomass strategy in the Government’s latest Emissions Reduction Plan supporting NZ’s energy transition to net zero 2050 and increasing security of electricity supply. GENESIS is working with the Ministerial bioenergy taskforce to ensure there are no unnecessary barriers to establishing a biomass industry at pace.
“We have recently had teams visiting new biomass production and generation facilities in south-east Asia and we are heartened by the technology development we have seen in scaling pellet production. Back home we are encouraged by the level of enthusiasm among iwi, the forestry sector, potential capital partners and Government to work with us in achieving our goal.” says Hickman.
“New Zealand could secure dry year cover using biomass from domestic forests, and we also believe we have the feedstock available across the country to displace coal and gas, securing the electricity system with domestic fuel storage for generations to come. This term sheet signing with FORESTA is a significant step on our journey.”
Latest News
