Norske Skog & Z Energy Join Forces

Date published: February 17, 2013 at 9:32 am | Comments

Norske Skog, with a base in Kawerau, has joined forces with a national one in a bid to help the forestry industry.

Norske Skog wants to focus on other ventures, with a low demand for newsprint recently causing the closure of a paper machine in the Eastern Bay town.

It’s collaborating with Z Energy, and the two want to open a demonstration plant, which would turn wood waste into transport fuels.

Z spokesman Jonathan Hill says it would help the local forestry sector, while creating a ‘green chemical’ industry.

He explains if it went through to completion, a second generation biofuel for New Zealand would be made from the residues of our forestry industry.

He says it would effectively be taking a waste wood stream, and converting it into a high quality bio-crude which could then become a variety of biofuel products.

Mr Hill says there would also be an employment benefit, with the production of a significant volume of renewable biofuels having clear environmental benefits.

He explains it would in time perhaps lead to a reduced need to import mineral oil products, which could benefit our balance of payment situation.

Source: 1XX FM