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Business Growth Agenda: the role of forestry & bioenergy

James Palmer

Bioenergy Association and NZBIO Conference

Rotorua

7June 2012

Director Strategy, Systems and Science Policy

www.mpi.govt.nz


The new Ministry for Primary Industries

The Ministry for Primary Industries (MPI) is focused on:

Growing and Protecting New Zealand

Providing policy advice and programmes that support

the development of NZ's primary industries.

MPI works right across the value chain from primary

producers through to retailers and consumers.

New model is an integrated end to end service with

newly created scale and critical mass in key areas.


Our Strategy 2030


Our Strategy 2030

Our approach:

• Enabling

• Partnering

Our focus:

• Maximise export opportunities

• Improve sector productivity

• Increase sustainable resource use

• Protect from biological risk


The Business Growth Agenda

•Innovation and ideas

•Skilled and safe workplaces

•Natural resources

•Infrastructure (including electricity, broadband,

transport)

•Export markets

•Capital markets

MPI is involved in all six


Our energy consumption

Total energy use (2010): 530 PJ


Our energy profile


Policy setting

Government Policy

Energy Strategy

• diverse resource development

• environmental responsibility

• efficient use of energy

• providing secure and affordable energy

•Economic development

•Science and Innovation

•Climate Change/ETS

•Forestry

•Agriculture

•Waste Management

•Water

•Transport

•Regional development

Bioenergy


Potential Opportunities

Heat

Total Current demand (derived)

Current supply from biomass

Electricity

Total Current demand

Current supply from biomass

Transport fuel

Total Current demand

Current supply from biomass

~150 PJ

~ 40 PJ

~145 PJ

~ 2 PJ

~245 PJ

~ 0.2 PJ


Commercial viability?

1979 Study 2008 Study

Wood Cost

$/m 3

(in 2008 $)

62.27

(low value

component)

125.00

(Purpose

grown)

Fuel Cost Wood Cost

$/litre $/m 3

(at pump, in (in 2008 $)

2008 $) 1

Fuel Cost

$/litre

(at pump,

in 2008 $) 1

2.50 68.75 2.74

3.19 105.40 3.13

1

Cost per litre of petrol equivalent including taxes and

levies


Emissions Trading Scheme


Government support for Bioenergy

Support for research and development

- MSI funding for biofuel research projects

~ $41 million during 2008-14

- MPI has supported bioenergy projects under Sustainable Land

Management and Climate Change programme and Sustainable

Farming Fund

- Primary Growth Partnership


Government support for Bioenergy (contd.)

Support for demonstration and information

dissemination

MPI’s Forest Industry Development Agenda:

- Bioenergy fund ~$3.2 million

- Bioenergy Knowledge Centre website

- ECCA administered wood energy grant scheme

MPI’s funding for EECA administered School boilers

conversion project and Wood Energy programme ~ $8.4 m

NZTE and EECA programmes


Government support for Bioenergy (contd.)

Other supporting measures include

- Biodiesel grant Scheme

- Excise duty exemption on ethanol

-Wood fuel emissions are exempted under

the Emissions Trading Scheme


Where to from here?

Your challenge is to turn potential into reality

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