Plans to build New Zealand’s first integrated biomass manufacturing facility to produce pine-based chemicals and low-emissions fossil-free fuel to replace coal have moved a step closer with the signing of a lease at a site at Kawerau.

ASX-listed Foresta Group Holdings Limited has executed a formal lease with the local Māori land trust Putauaki Trust following satisfaction of the conditions precedent under the previously announced Agreement to Lease for a 9.6-hectare site at Kawerau.

The lease will commence on March 1 for an initial term of 30 years, with an option to extend the lease for another 20 years.

"This is another important milestone for the company that brings us significantly closer to breaking ground on this project, which represents the first step in our vision to establish sustainable, pine chemicals and low-emissions fuel production across New Zealand," said Foresta executive chairman Henry Cheng.

Foresta’s state-of-the-art integrated biomass manufacturing facility is expected to employ more than 70 people as well contributing to employment in the region for businesses supporting the manufacturing facility. The company intends to begin earthworks next summer.

Mr Cheng and executive director Dr Maurizio Fabiani were present for an official signing ceremony on Monday to formally execute the lease together with Putauaki Trust chairman Tiaki Hunia and chief executive John O'Brien.

The signing ceremony was hosted in the Beehive by Shane Jones, Minister for Regional Development, Minister for Resources and Associate Minister for Energy.

Foresta is set to revolutionise the energy landscape in New Zealand by manufacturing torrefied wood pellets - an eco-friendly replacement for coal, producing 90 percent fewer emissions. The innovative manufacturing process also generates renewable pine chemicals, which can substitute petrochemicals derived from fossil fuels in a variety of everyday products, from car tyres to cosmetics. All wood feedstock will be sourced from renewable Forest Stewardship Council-certified forests.

"By processing and adding value to local wood resources, we aim to drive economic growth in the region and contribute to New Zealand's climate emissions targets by providing a renewable energy source that can be used in existing coal boilers," said Mr Cheng.

"We are proud that our project has received recognition by the New Zealand Government as a project of regional and national importance, allowing us to fast-track resource consents and approvals."

Foresta’s scalable manufacturing process allows for the establishment of additional facilities close to forests across New Zealand, which have the potential to eliminate the need for coal to be burned domestically and have surplus production available for export to Asia.

Cheng and Fabiana on right, John and Tiaki to the left, Tiaki and Henry holding the agreements. Jones at back.

Foresta directors, executive chairman Henry Cheng and Executive Director Dr Maurizio Fabiani, were present for an official signing ceremony on 9 February 2026 to formally execute the lease together with