Thursday, March 20, 2008

[PBN] NZ can grow all its own biofuels, says study

From: NZ Herald

5:00AM Tuesday March 18, 2008
By Angela Gregory

Purpose-grown forests to produce biofuels could meet all New Zealand's
transport fuel requirements within 40 years, according to a study by the
Crown research institute Scion.

Chief executive Tom Richardson told the Herald yesterday that New
Zealand was one of just a handful of places identified worldwide that
was well placed to become carbon-neutral for transport, given advances
in biofuel technology.

Dr Richardson said incentives for developing a biofuel industry out of
forests included that New Zealand had plenty of suitable land and
favourable tree-growing climate and soils.

New Zealand could be a world leader in the field and was already getting
international attention because it could be self-sufficient given the
ratio of vehicles to land available.

Dr Richardson said the study had found that if New Zealand were to start
planting such purpose-grown forests and introduce a programme of managed
harvesting and replanting, the resulting biomass could eventually be
used to meet all the country's projected future needs for transport
fuels and heat.

That could be achieved without threatening the important agricultural
industry, as close to one million hectares of steep, marginal land had
been identified as potentially available, he said.

"Unlike other biofuels it does not compromise food supplies. There is
also the benefit that the trees would be beneficial in helping prevent
erosion on the steep land."

Ancillary benefits included flood mitigation, improved water quality and
carbon sequestration.

Dr Richardson said such a scheme would require a doubling of the current
forest estate, which was now 1.8 million hectares, a conservative
estimate which assumed no further improvements in technology.

He said about 2.5 million hectares of purpose-grown forests would have
to be eventually grown and earmarked for biofuels to produce 110,000ha a
year for harvesting to sustain such an industry.

Establishing such a forest resource would take about 25 years at an
estimated cost of around $2-3 billion a year.

But some of the establishment costs and early cash flows could be offset
by the emissions trading scheme, he said.

More investment in infrastructure such as roading would also be needed.

Dr Richardson said the country's vehicle fleet would need to "move on"
to run on biofuels but that was necessary anyway and made more feasible
as technology developed,

"New Zealand could be a world leader in transforming the vehicle fleet."

He said the technology for creating biofuels from trees such as pine and
eucalyptus was being developed in New Zealand and there was private
sector investment interest.

The findings were in a Bioenergy Options report, a collaboration between
Scion, the National Institute of Water and Atmospheric Research and CRL
Energy, with input from Landcare Research, Crop & Food Research, Waste
Solutions and Process Developments.

Even the most conservative estimates showed NZ had at least 830,000ha of
steep, erodable, low-producing grass and shrub lands that could be
cost-effectively used for forestry.

Dr Richardson said purpose-grown energy forests of short, medium and
long rotation could be established using only 37 per cent of the 8.7
million hectares of medium- and low-quality land available.

Another recent feasibility study has shown bioethanol produced from wood
and wood residues is a feasible option for transport biofuels despite
previous concerns that it was too expensive and too difficult to use
that resource.

Dr Richardson said the studies highlighted the important role forestry
and biomass could play in helping New Zealand meet the Government's
targets of sustainable, carbon-neutral energy.

"The Government seeks carbon neutrality in the electricity sector by
2025, in the stationary energy sector by 2030 and in the transport
sector by 2040," he said.

The Bioenergy Options report provided a viable plan of action and
timeline for achieving those goals, particularly in heat and transport

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