Government sets direction for future of bioenergy
Published: 22 October 2025
New Zealand’s first Wood Energy Strategy, Wood Energy Action Plan and Government Statement on Biogas released today.
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Wood energy comes from residues of the forestry and manufacturing sectors and can be used to generate heat for industrial processes, offering an alternative to coal, gas or electricity. It presents an exciting opportunity to diversify New Zealand’s energy mix at a time when our energy system is facing security and affordability challenges. Wood energy could replace around 40% of fossil fuelled process heat by 2050, and displace 300,000 tonnes of coal at Huntly Power Station. This would reduce reliance of our energy system on imported fuels and domestic gas and cut down on emissions.
The Wood Energy Strategy aims to accelerate wood energy as a reliable, affordable and sustainable energy resource for domestic and export markets – creating new economic and employment opportunities for forest owners and wood producers in New Zealand’s regions. The accompanying Action Plan provides an overview of current and planned work to support the strategy, including new co-funding opportunities.
Hon Simon Watts has also announced the release of the Government’s Statement on Biogas. As a renewable energy source, biogas could also provide a local, clean solution to New Zealand’s long-term energy needs.
The Statement reaffirms the Government’s commitment to the biogas market and sets out key actions it will take to enable its growth. This includes supporting investment in new projects by leveraging the Government’s energy demand, ensuring regulatory settings enable investment and reducing barriers to the market’s development.
Read the Minister’s Press Release:
Accelerating bioenergy in New Zealand(external link) — beehive.govt.nz
Access the Wood Energy Strategy [PDF, 6.4 MB]
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