FAQ

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Frequently Asked Questions

Is PEFco an incineration process?

No. PEFco does not incinerate waste but manufactures fuel. Waste-to-Energy incinerators burn all types of waste to generate heat, steam, and electricity. Essentially, the more plastic they burn the more energy is generated, but many in the community are concerned about the resulting air emissions.

PEFco manufactures fuel. Only red-bin and transfer-station waste destined for landfill is processed. Additional recyclables like metals and glass are removed, as are PVC and hazardous substances. The remaining waste has a high organic content, which is heat-treated to kill all pathogens and, under pressure and steam, forms high-energy cellulate. This is then formed into fuel pellets.

Where will PEFco get the waste from?

In the South Island, Waste Investments has signed a contract to supply 165,000 tonnes of red-bin and transfer station waste to PEFco. Waste Investments owns many waste management companies, has various strategic relationships, and works with many district councils on waste supply. Waste will be collected through regional transfer stations and transported to the plant by road or rail.

What happens to the waste when it is processed?

PEFco will receive 165,000 tonnes of red-bin and transfer-station waste each year to manufacture 140,000 tonnes of pellets.

All waste is x-rayed and passes through metal detectors to remove metals and batteries. Treated timber and some plastics are also removed along with inert materials like soil. Recyclables are separated and diverted. The remaining material is processed into a sterile, pathogen-free, odourless substance called Cellulate, which is then pelletised for efficient transportation and use.

Can I burn PEFco pellets in my existing Industrial boiler?

In most cases, yes. PEFco pellets are designed as a coal substitute and can be blended with coal, woodchips, wood pellets, and biomass. First you will need to check with the Bioenergy Association or Canterbury Wood Chip Supplies for PEFco pellet specifications and your boiler manufacturer for operational requirements.

What will my ETS requirements be for PEFco pellets?

As Processed Engineered Fuel can be blended with coal, woodchip, wood pellets, or biomass, each industrial user will need to calculate their own Unique Emissions Factor (UEF) or use a generic factor. When compared directly against coal, independent calculations indicate that if coal costs $4 per GJ in ETS liability, PEFco would be significantly less than $1 per GJ.

How much greenhouse gas can be avoided by using PEFco pellets?

According to third-party studies conducted under the Alberta carbon protocol, up to 2.75 tonnes of CO2 can be avoided for every tonne of PEFco pellets used.

How do PEFco pellets reduce greenhouse gas emissions?

Approximately 70% of municipal solid waste is biogenic, allowing PEFco pellets to reduce greenhouse gas emissions by around 70% compared with fossil fuels.

Are there any emission concerns when using PEFco pellets?

No. Independent third-party testing conducted at a national laboratory showed improved emissions performance compared with coal.

What consents are required to develop a PEFco plant?

Each plant requires a variety of consents - building and resource consents.
For the South Canterbury plant, a building consent and a land use resource consent will be needed from the district council. An air discharge consent from the regional council will also be needed, but there will be no discharges to land and water.

How much water will be used per day?

Approximately 84 cubic metres of water per day will be required.

Is PEFco part of the circular economy?

Yes. PEFco converts non-recyclable waste into useful energy, recovers metals first, and transforms the remaining material into fuel, reducing landfill use and replacing fossil fuels.

Why is PEFco considered sustainable renewable energy?

PEFco is produced from municipal solid waste, an ongoing and unavoidable waste stream generated by society, making it a sustainable and renewable energy source.

Is the technology patented?

Yes. There are more than 20 patents issued or in process.

Do PEFco have exclusive New Zealand rights to the technology?

Yes.

Where are the WastAway plants?

WasteAway began research and development in the mid-1990s, and the first commercial facility started operations in Morrison, Tennessee in June 2003. There are six plants at different stages of development across the USA. WasteAway is also working with PEFco here in New Zealand to establish our South and North Island plants.

Why now for New Zealand?

New Zealand has high landfill levies, rising energy costs, and an energy supply crunch. We also need to reduce our reliance on landfills. New Zealand, therefore, has the right economic and environmental conditions to adopt this technology.

When will the first plant be open?

The first South Island PEFco plant is scheduled to open in April 2027, pending regulatory approvals. The timeline for the North Island plant will be announced once supply agreements for both incoming waste and outgoing pellet sales are signed.

How many staff will PEFco employ at each plant?

Each plant will employ 30 people and support many additional jobs and businesses indirectly.

Can I buy PEFco pellets in the South Island?

No. Canterbury Woodchip Supplies Limited has the exclusive sales rights in the South Island.

Can I buy PEFco pellets in the North Island?

Yes. Discussions are underway with several interested parties although no contracts have been signed yet. Supply is targeted for late 2027 to mid 2028.

What are the social benefits?

PEFco supports communities by creating stable long-term employment, supporting local industries, and improving energy security.

What are the environmental benefits?

PEFco diverts up to 85% of waste away from landfill, reduces methane emissions, replaces coal, and produces a cleaner-burning fuel.

What are the cultural benefits?

PEFco works with local communities and mana whenua early in development, focusing on environmental stewardship and local employment.

How are you funding the build?

The first plant is being funded through a mix of equity and debt. PEFco has applied for an interest-free loan from Ara Ake, while Pacific Waste Holdings has committed significant equity funding.

Will PEFco consider investment partners?

Yes. PEFco will consider investment partners to support plant construction and future facilities. Interested parties can contact PEFco directly.

Helpful links - PEFco and partners

https://www.pefco.co.nz/
https://wastaway.com/
https://cpgrp.com/
https://canterburywoodchip.co.nz/
https://www.bioenergy.org.nz/member/pefco-nz

Helpful links - ETS and Waste Regulation

https://www.legislation.govt.nz/regulation/public/2009/0144/latest/LMS491295.html
https://environment.govt.nz/what-government-is-doing/areas-of-work/waste/waste-disposal-levy/expansion/
https://icapcarbonaction.com/en/ets/new-zealand-emissions-trading-scheme
https://www.climatecommission.govt.nz/assets/ETS-advice/2025/CCC-NZ-ETS-advice-2025_WEB.pdf
https://northandsouth.co.nz/2023/08/21/burning-rubbish-to-generate-electricity-new-zealand/

Helpful links - Energy

https://www.zenenergy.co.nz/blog/the-gas-crunch-shrinking-supply-rising-prices-and-why-commercial-solar-will-be-part-of-the-solution-for-many
https://environz.co.nz/news/unrecyclable-plastic-converted-into-fuel-source
https://www.pellet-making.com/blog/compare-biomass-with-coal-and-natural-gas.html
https://pce.parliament.nz/media/jucla20r/covec-final-report-19-07-10.pdf
https://nzif.org.nz/nzif-journal/publications/downloadfulltext/22515
https://www.pellet-making.com/blog/wood-pellets-calorific-value.html
https://www.bioenergy-news.com/news/kawerau-to-host-new-wood-pellet-plant-aimed-at-reducing-coal-use/
https://www.bluesourceCAN.com
https://www.araake.co.nz/

PEFCO, owned by Pacific Waste Holdings, is leading the development of engineered fuel from municipal waste.

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