The Greek philosopher Archimedes said, “Give me a lever long enough and a fulcrum on which to place it, and I shall move the world.”

In this context, the Waste Minimisation Fund is the fulcrum, and Organic Waste Management is the lever. Both are extant government policies. 

What can this achieve? A robust and sustainable bioenergy market that breeds innovation. Ironically, the missing piece of NZ’s climate ambition is an overarching doctrine atop its climate strategy and policies (tactics). 

Bioenergy can and should form that doctrine.

Reducing gross emissions while simultaneously augmenting NZ’s energy capacity, overlaid with better environmental outcomes (water and soil) while optimising capital outlay is common sense. 

And the ‘wins’ truly begin to stack. For example, talk of agricultural emissions is tantamount to heresy in the eyes of some, even though the government recognises that failing to do so means Aotearoa will never meet its goals.

However, a robust bioenergy sector allows for more productive use of farmland without the tame options of the ‘pasture vs. carbon farming’ narrative currently consuming the industry. Bioenergy is, by its very nature, ‘carbon neutral’.

But before we get ahead of ourselves, let’s talk numbers. And here’s the real kicker: simply by optimising the conversion of residual biomass to biogas, NZ could reduce gross emissions by at least 10 MtCO2e per annum. It is a ‘drop-in’ fuel and can be used with existing infrastructure for heat, electricity, transport, industrial processes, etc.

If we do this properly, there is no reason why NZ cannot be ‘carbon negative’ by 2040, an entire decade earlier. Additionally, Aotearoa will still be a robust, diversified economy driven by innovation in the energy and materials sectors, underpinned by its primary industry. Better still, NZ is well positioned to be the bookkeeper and banker to the world’s carbon economy.  

To conclude, an apt idiom here is we’re missing the forest for the trees. There’s so much that is doable here and now that we may as well roll up our sleeves and get on. 

PESTLE Analysis

New Zealand's Emissions Reduction Plan (ERP2) provides a robust political framework supporting Alimentary Systems' technological innovations. The plan includes five key pillars and eight policies that create a supportive ecosystem for sustainable technologies.

Key Political Enablers:

• Waste Minimisation Fund supporting infrastructure development

• Recognition of emissions reductions in the New Zealand Emissions Trading Scheme (NZ ETS)
  

• Commitment to achieving Net Zero by 2050
  

• Policy incentives for renewable energy and organic waste management

Policy Implications

• The government's policies specifically validate ASL's technological approach:

• Increasing landfill levies incentivizes waste management innovation

• Commitment to pricing agricultural emissions creates market opportunities

• Support for renewable energy projects aligns with ASL's technological capabilities

Policy 1: Investing in Resource Recovery Systems and Processing of Organic Waste

Strategic Context

The New Zealand Waste Minimisation Fund represents a pivotal opportunity for Alimentary Systems to leverage its technological capabilities. This policy addresses the national waste management challenge by providing financial support for innovative infrastructure development. The government is increasing the landfill levy to incentivise behaviour change away from landfills. Further, the government will invest through the Waste Minimisation Fund in building the necessary infrastructure. 

Key Implications for ASL

Infrastructure Consolidation: ASL has already demonstrated strategic positioning by consolidating waste infrastructure in Nelson, creating a precedent for effective waste diversion.

Economic Incentive: Increasing landfill levies creates a strong financial motivation for alternative waste processing solutions.

Technological Advantage: ASL's ability to process organic waste transforms a potential environmental challenge into an economic opportunity.

Practical Impact

By converting organic waste into valuable resources like biogas and green fertilizer, ASL moves beyond traditional waste management. The technology creates a circular economy approach that:

1. Reduces landfill dependence

2. Generates renewable energy

3. Produces agricultural inputs

4. Minimises environmental footprint

Policy 2: Recognising Reductions and Removals in the NZ Emissions Trading Scheme (ETS)

Strategic Alignment

New Zealand’s Climate Change Commission has steadfastly believed that Aotearoa is unlikely to meet its emissions targets through offsets alone. Therefore, investing in emissions reductions is a key component of meeting these goals. Significantly, the government has heeded this advice and is also including projects that reduce emissions within the ETS. 

Quantifiable Benefits:

1. Emissions Reduction: ASL's technology in Nelson can reduce 4,300 units of gross emissions

2. Direct ETS Participation: Ability to generate and trade emissions reduction credits

3. Proactive Approach: ASL has been advocating for gross emissions reductions since 2021

Economic Model

The ETS creates a direct financial mechanism that transforms environmental responsibility into a potential revenue stream. ASL's technology has become an ecological solution and a financially attractive investment.

Policy 3: Enabling New Renewable Energy Projects

Technological Innovation

Increasing the mix of renewable energy in NZ’s electricity supply is key. ASL's approach addresses critical challenges in New Zealand's renewable energy landscape, particularly the limitations of hydro-based electricity generation; it is insufficient to meet all of the country’s energy needs. Furthermore, hydropower is variable, with low rainfall years and, therefore, lesser hydropower generation requiring the combustion of coal to meet demand.

Efficiency in generation must also be matched with efficiency in transmission and distribution, and this is where ASL’s technology provides a key benefit. In Christchurch for example, managing organic wastes can help augment the grid by up to 2 MW of renewable energy to meet peaking loads. 

Innovative Capabilities:

• Energy Yield Multiplication: Increases energy generation 4-10x compared to traditional methods

• Grid Stabilisation: Demonstrated ability to augment grid capacity (e.g., 2 MW in Christchurch)

• Complementary to Existing Infrastructure: Provides a "drop-in" fuel solution

Strategic Significance

By offering a renewable energy solution that:

1. Reduces reliance on coal during low-rainfall periods

2. Provides consistent energy generation

3. Utilising existing infrastructure, ASL has become a key player in New Zealand's energy transition strategy.

Policy 4: Pricing Agricultural Emissions

Comprehensive Approach to Agricultural Challenges

Agriculture accounts for 50% of New Zealand's emissions, with a significant portion (13%) coming from nitrous oxide emissions related to synthetic fertilizer use. ASL fertiliser will improve water-holding capital and sequester carbon in soil while enhancing biodiversity. ASL’s technology supports the production of green fertiliser, which reduces farmers' liabilities and will form a key part of the strategy for the primary sector to meet its goals. improves water-holding capacity and sequesters the primary sector's strategy

ASL's Transformative Solution:

• Green Fertiliser Production: Reduces farmer liabilities

• Water Management Improvement: Enhances agricultural sustainability

• Emissions Reduction: Directly addresses nitrous oxide challenges

Holistic Impact

ASL's technology offers farmers:

• Economic benefits through reduced emissions

• Improved environmental performance

• Potential for additional revenue through emissions trading

Interconnected Policy Ecosystem

The true power of ASL's approach lies in the interconnected nature of these policies. Each policy builds upon the others, creating a comprehensive framework that:

• De-risks potential investments

• Supports a multi-pronged revenue strategy

• Demonstrates thought leadership across multiple economic sectors

Conclusion: ERP2 has included ASL’s Submisisons focused on Resource Recovery & Clean Energy Transition

Alimentary Systems stands at the intersection of technological innovation, environmental responsibility, and economic opportunity. By aligning closely with these four key policies, ASL addresses New Zealand's ecological challenges and creates a compelling value proposition for investors, policymakers, and industry stakeholders.

The company's approach transcends traditional problem-solving, offering a holistic solution that transforms environmental constraints into strategic advantages.

Read ASL's Submission to Aotearoa New Zealand's second emission reduction plan consultation: Alimentary Systems SD250824