Foresta Group Partners With NZ Crown Institute to Map Pine Chemical Yields
Key Takeaways
- Foresta Group Holdings has entered a NZD$150,050 collaboration with the Bioeconomy Science Institute (BSI) to characterise rosin and turpentine extractives in radiata pine stems, stumps and branches across contrasting growing regions.
- The Bioresource Processing Alliance (BPA), funded by New Zealand's Ministry of Business, Innovation and Employment, will contribute NZD$54,150 directly to BSI — meaning Foresta's total cash outlay is NZD$54,150 against a NZD$150,050 total project value.
- BSI is a Crown Research Institute formed from the merger of four established New Zealand research organisations, employing more than 1,500 scientists and carrying over 75 years of forestry expertise from its Rotorua campus.
- Research outcomes will deliver quantitative data on the concentration, composition and variability of rosin and turpentine extractives — the foundational commercial data Foresta needs to assess production scale potential.
- Foresta holds a proprietary extraction process that uses the tree's own solvent chemicals to extract rosin and terpenes naturally, and this project advances the data pipeline underpinning its ambition to become a leading global supplier of pine chemicals and biomass pellets.
Foresta partners with Bioeconomy Science Institute to advance pine chemicals research
Foresta Group Holdings Limited has entered a collaboration agreement with the New Zealand Institute for Bioeconomy Science Limited, operating as the Bioeconomy Science Institute (BSI), through its wholly owned New Zealand subsidiary, Foresta NZ Limited. The project focuses on quantifying and characterising rosin and turpentine extractives in radiata pine stems, stumps and branches.
The collaboration carries a total project value of NZD$150,050 and is supported by the Bioresource Processing Alliance (BPA), a research and development programme funded by New Zealand’s Ministry of Business, Innovation and Employment (MBIE). That government-backed support is meaningful: under a separate funding agreement, BPA will contribute NZD$54,150 directly to BSI, while Foresta will contribute NZD$54,150 in cash and an estimated NZD$41,750 through in-kind project support. External funding therefore offsets a significant portion of Foresta’s total exposure on this project.
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What the collaboration involves
The project will examine samples from different sections of radiata pine trees across contrasting growing regions. BSI will undertake the full scope of technical work: sampling, extraction, analytical profiling, data interpretation and reporting.
The outcome for Foresta is a body of quantitative data covering the concentration, composition and variability of rosin and turpentine extractives across the sampled tree sections and locations.
About the Bioeconomy Science Institute
BSI is a recently formed Crown Research Institute, owned by the New Zealand Government and governed by an independent board. It was created through the merger of four established New Zealand research organisations:
- Scion
- AgResearch
- Manaaki Whenua – Landcare Research
- Plant & Food Research
BSI comprises more than 2,300 people, including more than 1,500 scientists and researchers located across New Zealand and internationally. Its main expertise in forestry research is centred on its Rotorua campus, which carries more than 75 years of experience in the field. For Foresta, this is an institutional-grade research partner with deep, sector-specific scientific credibility.
Understanding pine chemicals and why this research matters to investors
Rosin and turpentine are naturally occurring chemical compounds found within pine trees. Rosin is a solid resinous material extracted from pine resin, while turpentine is a liquid solvent derived from the same source. Both are classified as extractives, meaning they can be separated from the tree’s woody biomass using appropriate processes.
These compounds are not niche materials. They are inputs to a wide range of everyday manufactured products, and that breadth of application is what gives them commercial relevance.
| Chemical | Source in Tree | Key End Uses | Market Relevance |
|---|---|---|---|
| Rosin | Pine resin / stem | Adhesives, inks, paint, gum | Industrial manufacturing input used across multiple sectors |
| Turpentine | Pine resin / stem | Car tyres, perfume | Feedstock for fragrance and rubber industries |
Before a company can commercialise these compounds at scale, it needs to understand the yield, quality and variability of extractives across different tree parts and growing regions. That is precisely what “extractives characterisation” means in practice, and it is exactly what this project is designed to deliver.
Foresta has developed a proprietary process that uses the tree’s own solvent chemicals to extract rosin and terpenes naturally.
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Strategic significance and what comes next
The BPA and MBIE backing is worth noting beyond the dollar contribution. BPA’s contribution is channelled through a research and development programme funded by MBIE.
From a capital efficiency standpoint, BPA’s NZD$54,150 contribution directly to BSI reduces the work Foresta’s own balance sheet needs to carry while still advancing its commercial data pipeline. The company’s total cash outlay of NZD$54,150 represents well under half the total project value.
Foresta has stated its ambition to become a leading global supplier of natural and renewable pine chemicals and biomass pellets. This research project sits at the data-gathering phase of that pathway: it does not signal imminent commercialisation, but it is a necessary and structured step toward understanding what commercial scale could look like.
Investment considerations
- The project is externally co-funded, with BPA contributing NZD$54,150 directly to BSI and limiting Foresta’s cash outlay relative to the NZD$150,050 total project value.
- BSI’s institutional scale (more than 1,500 scientists and researchers) and its 75+ years of Rotorua-based forestry expertise bring credibility to the analytical work underpinning Foresta’s commercial data foundation.
- Research outcomes will provide quantitative data on the concentration, composition and variability of rosin and turpentine extractives across the sampled tree sections and locations.
- MBIE backing, channelled through the BPA programme, adds a layer of independent validation to the project’s scientific merit.
Editorial note: No direct quote from Executive Chairman Henry Cheng was included in the source announcement. The editorial team should be consulted before adding a management quote to this section.
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