| Project Name: | Local manufacturing of bioproducts from forestry by-products |
|---|---|
| BPA Number: | 23201 |
| Funding Round: | Nov 2022 |
| Report(s): | A socio-technoeconomic analysis on forestry by-product use for Te Kupenga Hōu |
| For enquiries contact: | Lania Holt |
| Phone: | 07 343 5899 |
| Email: | lania.holt@scionresearch.com |
Summary of Project and Key Findings:
Te Kupenga Hōu (TKH), in partnership with Lake Taupō Forest Trust (LTFT) and Lake Rotoaira Forest Trust (LRFT), has undertaken a techno-economic analysis to explore the potential for local manufacturing of value-added products from forestry by-products. This project, co-funded by the Bio Processing Alliance (BPA) and conducted by Scion, aims to identify viable processing options that align with the social, environmental, and economic aspirations of the Ngāti Tūwharetoa iwi collective.
Project Background The forest estates managed by LTFT and LRFT generate significant volumes of post-harvest residues, including offcuts, wood residue, and slash. Historically, these by-products have provided limited economic return and presented environmental management challenges. The Trusts seek to transform these low-value residues into higher-value products, creating local employment opportunities and enhancing regional economic resilience.
Key Findings:
- Resource Availability: The analysis identified the quantities of forest residues that are available annually for processing. Based on soil composition, the volumes of residues that can be sustainably harvested without negatively impacting soil nutrition or forest productivity were identified.
- Processing Options: Twenty-four processing scenarios were evaluated, focusing on the economic feasibility and potential for local employment. Three primary product categories emerged as promising.
Economic and Social Benefits:
- Employment: Depending on the primary product category, the analysis predicted that 10-30 full-time equivalent (FTE) jobs could be created from better resource use, enhancing local employment opportunities in the region.
- Environmental Impact: Utilizing forest residues for value-added products can reduce environmental risks such as nutrient loss and help comply with new erosion susceptibility regulations.
- Economic Viability: The selected processing options show positive returns on capital employed (ROCE), with integrated processes offering economies of scale and additional employment opportunities.
Recommendations:
- Residue Collection Trials: Conduct trials to evaluate the quality and cost of residue removal, which will inform further processing options and support compliance with environmental regulations.
- Market Study: Commission a study to assess market demand, product prices, and investment readiness for the preferred processing options.
- Stakeholder Engagement: Share the project findings with the broader TKH collective to explore opportunities for synergy, circular economy initiatives, and innovation at the regional level.
The project underscores the potential for TKH to leverage its forestry by-products into sustainable and economically viable products, contributing to the wellbeing of the Ngāti Tūwharetoa people and the regional economy.
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