Genesis interim chief executive Tracey Hickman said the companies signed an agreement to work together and explore the viability of biomass as a substitute for coal.
Genesis interim chief executive Tracey Hickman said the companies signed an agreement to work together and explore the viability of biomass as a substitute for coal.
The possibility of a domestic biomass supply chain would also be investigated, Hickman said.
The companies had signed a biomass collaboration agreement as they looked for an alternative fuel source to help decarbonise the businesses, she said.
The agreement came ahead of a trial to burn biomass at Genesis’ Huntly Power Station next week, Hickman said.
The Huntly plant would continue to provide back-up to the electricity grid while Genesis transitioned to more renewable generating methods, she said.
The biomass used in the trial was imported and not manufactured locally, she said.
The black torrefied biomass was made from tree sawdust.
During torrefaction the biomass was heated slowly without oxygen to between 200C to 300C, she said.
The process created a solid and uniform palets that had about 30% more energy than raw biomass, Hickman said.
Burned torrefied biomass generally produced less than 10% of the emissions of coal, she said.
If the trial was successful the companies wanted to use New Zealand wood residues, including forestry slash, to produce biomass, Hickman said.
The companies needed to work with the forestry sector to determine how it could create a constant supply of raw material, and the possibility of a biomass plant being built, she said.
Genesis’ coal use varied depended on the weather and demand.
Under normal market conditions, and if there wasn’t a dry year or gas supply constraints, the company had enough coal to provide back-up support for the electricity system until at least 2024, she said.
Hickman said she was hopeful by next year it would know if a domestic supply chain of biomass was feasible.
Based on Ministry of Business, Innovation and Employment data from 2020, New Zealand could use up to 1.7 million tonnes of wood pellets a year and replace a similar volume of coal.
Fonterrachief operating officer Fraser Whineray said decarbonisation was a vital part of the co-op’s sustainability strategy as it had to meet evolving consumer expectations.
Genesis had committed to science based targets to remove 1.2 million tonnes carbon emissions a year by 2025, from a 2020 base year, tied to limiting global warming to 1.5C. These targets included reducing generation emissions by 36%, Hickman said.
Whineray said Fonterra was aiming for net zero by 2050, with an interim target of a 30% reduction of manufacturing emissions by 2030 from a 2018 baseline. It has also committed to getting out of coal by 2037.
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