New Zealand could build a renewable low-carbon transport fuels industry - but only if the nation decides to act. A new study by Crown Research Institute Scion outlines how the country could grow, process feedstock crops into green transportation fuels particularly aimed at the heavy transport, shipping and aviation industries.
The study “New Zealand Biofuels Roadmap Technical Report” by Crown Research Institute (CRI) Scion, a government-owned company that carries out research, science and technology development for the forestry, wood and wood-derived materials and other biomaterial sectors, outlines how the country could grow, process feedstock crops into green fuels particularly aimed at the heavy transport, shipping and aviation industries.
The two-year study was supported by Scion’s Strategic Science Investment Fund from the Ministry of Business, Innovation and Employment.
Focus on liquid biofuels
New Zealand imports around 98 percent of its liquid fossil fuel as a mix of crude oil and refined fuels and the study points out that the per capita fuel consumption is amongst the highest in the world, reflecting one of the highest car ownership rates in the OECD, a sparse population, limited public transport, and a relatively old and inefficient vehicle fleet.
Scion is the lead CRI for research into bioenergy production for New Zealand, and CEO Dr Julian Elder says the study was undertaken to investigate what liquid biofuel options are best suited to New Zealand.
We believe this study is a great starting point for an open and fact-based discussion around the New Zealand biofuels opportunities. We recognise that the information reported here is not an exhaustive study of all elements of a new biofuels industry, but hope this study will inform and catalyse such a debate, said Dr Elder.
The consumption of liquid fossil fuels is also largely responsible for the rise in New Zealand’s energy sector emissions since 1990 and represented about 23 percent of the country’s greenhouse gas (GHG) emissions in 2015. As such, biofuels could have a major impact on the overall lowering of carbon emissions.
We initiated our own study to inform and stimulate debate on the large-scale production and use of liquid biofuels in New Zealand. Our aim is to provide robust data, insights and a roadmap for our country to significantly reduce greenhouse gas emissions and improve our energy security, said Paul Bennett, Scion Science Leader Clean Technologies.
5 to 50 percent modelling
Scion undertook extensive stakeholder discussions and modified a computer model called Bioenergy Value Chain Model – developed by the Energy Technologies Institute, UK – to create scenarios of what crops and processing facilities would be needed to produce different quantities of transport fuel sustainability.
This modelling of fossil fuel replacement with biofuel equivalents ranged from 5 percent to 50 percent substitution. The modelling tool is available for more quantitative scenarios, based on what Scion hopes is an informed deliberation, planned strategy and long-term implementation to manufacture green fuels within New Zealand.
The study findings, presented in the New Zealand Biofuels Roadmap Summary Report, shows drop-in fuels from non-food feedstocks, particularly forestry grown on non-arable land, is the most attractive option. This form of biofuel production would also provide strong regional development and employment growth in regions such as Northland, East Coast and the central North Island.
However, both our modelling and stakeholder discussions are explicitly clear that market forces alone will not be sufficient to kick-start large-scale biofuel production. If New Zealand can agree on the future role and scale biofuels should play in decarbonising New Zealand transport, then we can develop a nationally coordinated implementation plan, aligned with stakeholders. Part of that internal agreement needs to be getting the public onboard as key beneficiaries of a sustainable liquid transport fuels approach, said Paul Bennett.
According to Bennett, there are five main benefits from New Zealand shifting to a biofuels future:
- Reduce of GHG emissions
- Meet New Zealand’s international commitments to the Paris Agreement and our Net Zero target by 2050
- Rejuvenate regional economic and employment growth
- Gain energy independence from oil imports, and
- Maintain access to international markets for our goods and services.
Scion’s modelling shows that by growing longer-term crops, such as energy forests, New Zealand could build a biofuelled future. The quantitative scenario modelling clearly shows tens of thousands of hectares of purpose-grown feedstock crops and billions of dollars of capital investment in processing plant construction and production would be needed to make an ideal, a reality.
According to Mike Bennetts Chief Executive for Z Energy Ltd, the largest fuel supplier in New Zealand and operator of a 20 million litre per annum biodiesel plant, the Biofuels Roadmap is a “considered and thorough” piece of work which shows why and how New Zealand can transition to a low-carbon transport fuel future.
All the pieces required for our country to transition aren’t crystal clear, but this study shows we have enough of a biofuels four-lane highway for us to start driving down.We may have to swap lanes somewhere, but to get to that level of precision now is impractical. We should use this roadmap as a call to action. How many more reports do we need to bring a closed-loop domestic biofuel production system into being that doesn’t adversely affect food supply chains? said Mike Bennetts.
