Information Sheet 32: GHG emissions using biomass energy for industrial and commercial heat

Bioenergy Association has investigated the opportunities for switching from fossil fuels to wood fuel for heat supply, and assessed the contribution this could make to greenhouse gas mitigation. Three scenarios have been developed of what would have to occur to get greater levels of greenhouse gas mitigation.  This information sheet summarises the options and suggests some policy actions.

Targets

Proposed targets for the substitution of coal with wood fuels (above 2017 levels) based on an Encouraged Growth scenario for implementing bioenergy are:

• 2030       4 PJ/year
• 2040       11 PJ/year
• 2050       15 PJ/year

By 2030 this equates to:

• Converting around 34MW/year to wood fuels
• Adding around 74,000 tonnes of wood fuel/year
• 400kt/year CO₂ eq emissions being saved in 2030
• Around $11 million in 2030 of avoided cost - otherwise may need to purchase carbon credits (at an assumed a carbon price of $25/tonne CO₂ eq)
• Incremental savings of $1.1 million/year over each of the 10 year period 2020 – 2030.

Information Sheet 32 sets out what the Bioenergy Association’s Wood Energy Interest Group believes is achievable and summarises the advocated strategy and policy options for using wood energy to contribute to the reduction of New Zealand’s greenhouse gases.