For large process heat energy systems, biomass hog fuel is cost comparative or more economical than coal. It's a price-stable, low-emission, renewable fuel that stands on its own prior to other market influences.
EECA, Energy Efficiency and Conservation Authority for the New Zealand government set effective emissions targets for businesses to reduce emissions, innovate, and invest in low-emissions solutions. This, linked with the introduction of the Zero Carbon Bill which proposes to establish emissions budgets as ‘stepping stones’ towards a new 2050 target, means a costly change for industry.
The Productivity Commission in its Low Emissions Economy report has modelled that to meet Paris Climate Agreement’s objectives of net-zero emissions by 2050, emissions prices would have to rise to between $150/t of CO2e to $250/t of CO2e.
Opting to fuel industrial processes with low-emission, carbon neutral biomass is already the economical choice and compared to coal, its price is favourable. Increases to the carbon price under a reformed ETS, however, will greatly enhance the price position of Biomass, Wood Energy Chip and Wood Pellet Fuel and make it even more attractive as a fuel option.