First large-scale biomass torrefaction facility announced for New Zealand

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.
This facility, developed by Carbona, represents a significant step in New Zealand’s transition to a sustainable, low-emissions energy future while supporting regional economic growth and job creation.
With an annual production capacity of 180,000 tonnes per annum of torrefied biomass, the facility will play a crucial role in helping New Zealand achieve its climate commitments, including net zero carbon emissions by 2050.
Discussions are underway with Genesis Energy to assess the commercial viability of supplying biomass for Huntly Power Station as an alternative to coal.
Once operational, the torrefaction facility is expected to create between 110 and 130 full-time jobs, delivering 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 backing.
“Torrefied biomass is a potential game-changer for New Zealand’s energy sector and industrial heat consumers,” said David McGregor, director at Carbona. “Offering a 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 Andritz and Polytechnik have recently commissioned a 60,000 tonne per annum torrefaction facility at the Joensuu Biocoal facility in Finland.
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 doors to global export opportunities. International demand for torrefied biomass is rapidly expanding, with Japan alone forecasting demand between 15 and 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 commencing in early 2026. Product commissioning is expected by late 2027, leading to commercial deliveries starting 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 underscores 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.”