Executive Summary: Essential oil extraction by-product utilisation

Summary of Project and Key Findings (for public disclosure):
This project, co-funded by the Bioresource Processing Alliance (BPA), aims to identify value-added applications for Port Blakely Essential Oil’s biomass residues, specifically woody biomass and hydrosol. Conducted by Scion in collaboration with Callaghan Innovation, the project supports Port Blakely’s objective to maximise value from their distillery operation by utilising these by-products. The outcomes will inform future research and development, commercialisation pathways, and process improvements, with potential applications in bioenergy production or hydrosol-derived products.

Project Background
Port Blakely Essential Oil Distilleries extracts Douglas fir essential oil for the fragrance and aromatherapy market. They have established an in-forest extraction plant where Douglas fir tops and branches are chipped, and the essential oil is extracted using the steam distillation method. The extraction plant produces a surplus of woody biomass, mainly needles and wood chips, which could be used as a source of bioenergy. The hydrosol (water phase recovered from the steam distillation) is currently discarded but contains biochemical components which may be useful when concentrated or isolated.

Key Findings
1. Bioenergy

• Processing trials and analysis of basic fuel properties confirmed that the woody biomass is a viable feedstock for bioenergy products, such as wood pellets.
• A technoeconomic assessment indicates that bioenergy production could be commercially viable, with profitability influenced by production scale.
• Utilizing zero-cost feedstock and surplus energy from the existing essential oil production facility offers significant cost advantages.

2. Hydrosol

• Reverse osmosis successfully concentrated the hydrosol, achieving a 20-times increase in concentration.
• Analysis of the hydrosol concentrate using mass spectrometry revealed the presence of monoterpenoids and other bioactive compounds.
• The hydrosol concentrate exhibited minimal antimicrobial activity against tested bacteria and fungi.

Economic and Social Benefits
1. Societal impact

• The Port Blakely Essential Oils distillery is located in a remote part of the country, expanding production would bring more jobs to rural New Zealand.

2. Environmental impact

• The development of bioenergy products, such as wood pellets, supports the transition to renewable energy, potentially reducing New Zealand’s reliance on fossil fuels.
• The potential development of hydrosol-based products offers an alternative to synthetic, petrochemical derived actives for a range of products.

3. Economic impact

• The valorisation of biomass residues into bioenergy feedstocks or hydrosol-derived products may offer new revenue streams for Port Blakely Essential Oils.
• Commercialising these new products would diversify Port Blakely Essential Oil’s product portfolio, reducing their reliance on a single revenue source.
• These new products may attract investment for scaling production or developing processing facilities.

Recommendations
Further work is recommended to address the following key challenges and opportunities:

1. Bioenergy

• Identify the source of ash in the woody biomass and assess its behaviour under combustion conditions.
• Explore alternative production scenarios, including the feasibility of a mobile processing facility.

2. Hydrosol

• Confirm and quantify key target compounds using certified reference standards to ensure accuracy and build confidence in the results.
• Conduct a wider range of bioactivity assays (e.g. antioxidant) to inform new product opportunities.

The project demonstrated the potential to valorise Port Blakely Essential oil’s biomass residues into bioenergy feedstocks and hydrosol-derived products, providing a foundation for future research, commercialisation and process improvements.

Catalogue of IP Generated by the Project (kept confidential to the BPA):
N/A

Statement from the industry partner describing the business impact of the project (kept confidential to the BPA):
N/A

TRL at start of project = 0
TRL at end of project = 1