Genesis Energy is in discussions with Foresta to secure locally produced biofuels for use at the Huntly power station, marking its first term sheet agreement with a New Zealand biomass producer. The goal is to obtain 300,000 tonnes of torrefied black pellets annually by the 2028 financial year.
Foresta anticipates producing more than this amount once its planned factory is operational but also plans to export biofuel products.
In a conversation with BusinessDesk, Foresta’s Business Development Manager, Dean Ormrod, stated that the company aims to provide a significant portion of Genesis Energy’s biofuel requirements.
“Those numbers will be clarified further as we move forward. Foresta will be able to produce up to that amount and more, not only for domestic but export market as well.”
Foresta plans to start site construction in September, subject to securing investment and finance, with a projected build time of 24 months.
In November, a share issue generated A$1.1 million (approximately NZ$1.21 million). Additionally, the company has secured a convertible note agreement worth A$2 million.
“We’re excited about the progress so far with Genesis. We’ve been working with them, obviously behind the scenes, for well over 12 months, and we’ve got there,” Business Development Manager Ormrod said.
Foresta has established multiple supply agreements with different companies. Previously, it secured a critical 10-year wood supply agreement with PF Olsen for the provision of 150,000 tonnes per year of logs, stumps, and slash from sustainably managed forests.
Foresta has also finalised an off-take agreement with Tailored Energy & Resources Ltd., a South Island-based energy distributor, to deliver 65,000 tonnes of pellets each year to its industrial clients. Additionally, Foresta has entered into a harvesting contract with Silvertree Biomass Solutions.