Slash in Ngātimoti. Photo: RNZ/Samuel Rillstone
The Bioenergy Association is calling on the energy sector and politicians to work together to utilise mountains of forestry slash to solve the country's electricity supply shortages.
Wood lying rotting in forests has untapped potential as an energy supply to keep companies operational, boilers running and lights on.
Chief executive Brian Cox said forest residue sold at about $16 per gigajoule, which was under half the cost of heat from electricity.
"Slash is valuable biomass that is just not being picked up and is being left in the forest," he said.
"We need to be picking up the residue from our harvesting as well as the residue from wood processing, they're a valuable fuel for making electricity."
He said there were signs momentum was building within the energy sector for biomass, also known as black pellets.
"The biggest way that's coming is Genesis Energy is looking at taking that biomass and making it into black pellets which they would use in the Huntly Power Station for making electricity."
Brian Cox said without a national biogas strategy the country was overlooking a crucial energy resource.
He said the forestry sector, forest owners and energy leaders needed to come together.
What that might involve was pricing the value of slash as a resource to help "create incentives to clear debris".
"What we've got to do is work together and get the energy companies to really think about what they can do for customers from the full range of energy resources that we do have in New Zealand," he said.
Another project was underway at Scion, where the Crown Research institute scientists were developing ways to get biofuel from forests to power ships.
Brian Cox said there was more work to do or the country risked more business closures due to the escalating cost of electricity and gas.
"Using forest biomass to produce energy can free up electricity and natural gas for other higher value uses," he said.
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