Wood waste is set to become the country's main source of industrial heating, according to a government agency.
The capacity for production of refined wood pellets has risen rapidly to more than 100,000 tonnes a year.
Timber mills and other wood processors get 80% of their heating and power from wood waste, but other industries have been slow to embrace the new technology.
But Murray Bell, a spokesperson for the Energy Efficiency and Conservation Authority, says big production plants such as those run by Fonterra and wineries are beginning to show interest in changing their heating processes from gas and coal to wood pellets.
Mr Bell says there is enough forest and other timber industry wood waste to meet the heating needs of all the country's industries.
