Huntly operators Genesis Energy have a target to offset coal burning with 300,000 tonnes of torrified (black) wood pellets. Photo: 123RF
Kawerau's mayor is "cautiously optimistic" about a new plant promising to replace coal with wood pellets.
The pilot project begins construction next month, promising between 50 to 75 new jobs for the Bay of Plenty town.
According to plant owner Foresta, the facility will tap into the area's extensive pine plantations, and will be a supplier to the nearby Huntly Power Station.
Huntly operators Genesis Energy have a target to offset coal burning with 300,000 tonnes of torrified (black) wood pellets. Foresta want to manufacture 2.1 million tonnes, the equivalent of New Zealand's coal consumption, the company said in a statement.
The plant will cost $410 million to build, Foresta said.
Kawerau Mayor Faylene Tunui told Morning Report the plant was a welcome boost to the local economy at a time when small towns were struggling.
"It just happens to be that announcements are arriving at a time where, unfortunately, other announcements aren't coming for other communities"
Tunui said she had been assured the project would have a local focus.
"Having high value jobs and long-term job opportunities, upskilling, that's a key part of what Foresta intends to invest into this project."
Nevertheless, Tunui said the plan was to step very carefully.
"I know I've been asked if this is the big boom project - I prefer to stay away from that and be very patient... these projects do take time, there's a lot of holding hands.
"While there was great opportunity in terms of growing the economy and offering jobs, it did come at the cost of environmental care and stewardship."
The plant would be built on a business park owned by Putauaki Trust, an organisation with several local iwi shareholders.
Tunui said her top priority was environmental stewardship, or kaitiakitanga.
"There's some cautious hope - there are existing businesses that have been here for close to 70 years, so the inquiries that I've fielded from Kawerau do appreciate the balanced view of being good environmental stewards, while exploring economic opportunities - cautiously optimistic might be a way to describe it."
Foresta have previously made an application to have the project fast-tracked.
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