Pine forests, like here at the South Island's Wairau River, could be used to make biochemicals as manufacturers seek plastic alternatives. Photo: 123RF
Investors are hoping New Zealand's abundant radiata pine trees can be turned into biochemicals in the hunt for alternatives to plastic.
Traditional plastics were derived from fossil fuels such as crude oil or natural gas, whereas natural biochemicals like polylactic acid (PLA) were usually made from plants, and could be used in manufacturing.
Engineering wood to create biofuels and biochemicals was the mission for NZ Bio Forestry, a company founded by Fomana Capital chief executive Wayne Mulligan with directors based in Wellington, Nelson and Singapore.
It signed a new agreement with two Taiwanese companies to develop New Zealand-based biorefineries to make biodegradable beverage cups, food packaging and utensils from the biochemicals it would produce.
The partnership included Taiwanese packaging manufacturer PanCycle and bioengineering firm Inspira Applied Bio Solutions.
Wayne Mulligan said the deal that was several years in the making offered a great opportunity for both forest growers and rural New Zealand.
"In New Zealand, we just need to repurpose the infrastructure we have, we need to revitalise the workforce around this and we can actually reinstigate what forestry is," he said.
"We believe that the forestry industry can actually contribute to communities and jobs far greater than it is.
"For our rural communities, and I grew up in the rural community, it's really important that we create really good, solid jobs in new sectors, such as decarbonisation, reducing plastics, removal of petroleum-based adhesives and the like."
Mulligan believed the biorefineries offered an economic solution to forest growers, many of whom had come to rely on exporting logs that were processed offshore.
"Next time you look at a forest, I ask you to look at it as a huge biomass of molecular technologies that come from New Zealand that replace fossils and petroleum.
"Because it's hydrogen and carbon under the earth and it's hydrogen and carbon standing right in front of you with all that lignin cellulose and hemicellulose," he said.
PanCycle chief executive Jepson Kuo said the partnership was a step toward more sustainable, forest-positive solutions.
"This represents a major step toward a truly circular bioeconomy," Kuo said.
"New Zealand offers an abundant, renewable and sustainably managed forestry feedstock for producing high-value biochemicals such as PLA, [Polyhydroxyalkanoates], and lignin-based materials.
"The flagship biorefinery in New Zealand will be a model for further expansion across the country."
Mulligan will be travelling to Asia and the United States to attract further capital for the plans to build a network of biorefineries.
He expected the first New Zealand site to be confirmed before Christmas.
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