Foresta Group Holdings Limited has executed a formal lease with the Putauaki Trust for the Kawerau site, marking a significant milestone in the development of its integrated biomass manufacturing facility. The lease commenced on 1 March 2026 for an initial term of 30 years, with an option to extend for a further 20 years. This development provides a secure long-term foundation for the Company’s flagship New Zealand facility.
Material actions and disclosures
The Company has completed the FEL 1 Concept Study and the low-carbon process heat feasibility study, both of which support disciplined progression through the front-end loading framework. The low-carbon process heat feasibility study concluded that geothermal resources are technically and commercially suitable for the project’s process heat requirements.
Foresta has also advanced the technical definition of the Kawerau Project, completing the FEL 1 Concept Study and the torrefaction technology due diligence activities. The design deliverables were submitted to Foresta in June 2026 and are currently undergoing internal review and progression to the next project development stage.
Commercially and operationally, the Company continues to mature the key workstreams required to establish a secure, sustainable, and scalable supply platform for Stage 1. Engagement across New Zealand’s forestry sector remains active, and the Company continues to strengthen relationships with Māori iwi, landowners, regional stakeholders, government agencies, and infrastructure partners.
Forward commitments
The Company aims to progress the Kawerau Project through the next stage of development, including continued advancement of funding discussions, refinement of project design, and further engagement with feedstock, geothermal, power, infrastructure, government, and regional stakeholders. FORESTA will continue to apply disciplined project governance, risk management, and cost control as it works towards developing a scalable low-carbon industrial platform capable of producing torrefied wood pellets, natural pine resins, and pine oils from renewable pine resources.
The formal execution of the Lease represents a significant milestone for the Company, providing a stable foundation for FORESTA’s strategic initiatives in the region and a significant step towards the advancement of the Company’s integrated biomass manufacturing facility in Kawerau. The signing ceremony was held at the Executive Wing of New Zealand Parliament in Wellington on 9 February 2026.