New Zealand’s government has welcomed the announcement of an initiative to establish the country’s first large-scale biomass torrefaction facility in the Central North Island. Developed by Carbona, this facility marks a significant step in New Zealand’s transition to a sustainable, low-emissions energy future while promoting regional economic growth and job creation.
With an annual production capacity of 180,000 tonnes of torrefied biomass, the facility will play a pivotal role in helping New Zealand achieve its climate commitments, including reaching net-zero carbon emissions by 2050. Discussions are ongoing with Genesis Energy to explore the commercial viability of supplying biomass to the Huntly Power Station as an alternative to coal.
Once operational, the torrefaction facility is expected to create between 110 and 130 full-time jobs, providing substantial economic benefits to regional New Zealand. The project’s ownership structure includes local Iwi, wood processing businesses, and international investors, reinforcing its strong local and global support.
“Torrefied biomass has the potential to be a game-changer for New Zealand’s energy sector and industrial heat consumers,” said David McGregor, director at Carbona. “With 30% higher energy density than traditional white wood pellets, torrefied biomass is ideally suited for use in existing coal-fired boilers due to its lower volatile content and hydrophobic properties, allowing for outdoor storage and improved handling.”
Carbona has partnered with two leading Austrian technology providers, Polytechnik and Andritz. Together, the companies recently commissioned a 60,000-tonne-per-annum torrefaction facility at the Joensuu Biocoal facility in Finland. Both Polytechnik and Andritz are already active in New Zealand, bringing proven experience to support this landmark project.
In addition to domestic applications, the facility opens the door to global export opportunities. International demand for torrefied biomass is rapidly growing, with Japan alone forecasting a demand of 15 to 20 million tonnes per annum. Carbona estimates that sustainable demand within New Zealand could exceed 1 million tonnes per annum, presenting a significant opportunity for future expansion.
The project is set to begin its design phase in mid-2025, with construction slated for early 2026. Product commissioning is expected by late 2027, with commercial deliveries beginning in early 2028.
“Once operational, the facility will contribute an estimated 439,000 tCO2e per year in carbon savings, making a tangible impact on New Zealand’s emissions reduction targets,” added McGregor. “This initiative reinforces New Zealand’s leadership in renewable energy innovation and strengthens the country’s position as a provider of sustainable fuel alternatives for both domestic and international markets.”