A forestry village’s bet on turning trees into jet fuel could reshape its economy

The aviation industry faces mounting pressure to cut emissions, with alternatives like electric aircraft still limited on long-haul routes — a gap that sustainable aviation fuel, made from renewable biomass, is increasingly being asked to fill. In New Zealand, one small forestry village is betting that its timber residues could become part of the solution.

Kaingaroa, a Bay of Plenty village built around one of the Southern Hemisphere’s largest plantation forests, is developing a plan to become the country’s first integrated wood-processing hub, led by the company NZ Bio Forestry. The project would combine wood processing, energy production and biorefining in one place, turning timber residues into biofuels, aviation fuel and high-value chemicals rather than simply exporting raw logs.

New Zealand’s Ministry of Business, Innovation and Employment notes that biofuel extracted from biomass such as forestry residues can help reduce emissions in hard-to-electrify sectors, though the process requires large investments, a steady supply of materials, and technology capable of converting wood residues into usable fuel.

NZ Bio Forestry has entered into a heads of agreement with Ngāti Manawa iwi to develop the project as a regional development initiative, aiming to create jobs in manufacturing, engineering, forestry technology and renewable energy for a village whose population has fallen sharply since industry reforms reduced local forestry employment.