The world’s first tissue machine operating wholly on geothermal steam in place of gas, is being unveiled at Essity’s Kawerau Paper Mill in the Bay of Plenty.
More than 100 people attended the official opening of the newly upgraded tissue machine, including New Zealand and Australian business leaders from the manufacturing, distribution, sustainability and retail sectors, and Kawerau business and community representatives.
"We have invested $20 million to upgrade our paper machine, which is the world’s only tissue machine using 100 percent geothermal steam drying," said Sid Takla, Managing Director of Essity Australasia.
"This has enabled us to reduce the Kawerau Paper Mill’s carbon footprint by 66 percent since 2009, including a 25 percent reduction with our new technology upgrade. That’s the equivalent of removing 2,200 cars from the road annually."
Essity enlisted the help of 25 international experts in engineering, operations, and safety management, including 120 local contractors. The tissue machine was upgraded over 12 weeks, which included removing old equipment, civil work, installing new equipment, and then commissioning.
Global hygiene and health company Essity is the only tissue manufacturer in New Zealand that makes paper onsite and converts it into finished products. The Kawerau Mill produces popular hygiene paper products used every day by Kiwis, including Sorbent and Purex toilet tissue and Handee paper towels. The mill also produces Tork paper products for customers in New Zealand and for export, which are used in ‘away from home’ settings including hospitals, schools, hotels and workplaces.
"Not only does the Kawerau Paper Mill’s upgrade lead the way in sustainable production for hygiene products, but its ongoing operation contributes around $40 million into the Bay of Plenty economy every year," added Takla.
Kawerau is the perfect choice for paper making because it has access to geothermal steam, a renewable energy resource sustainably managed by Essity’s geothermal steam partner and supplier, Ngāti Tūwharetoa Geothermal.
"The geothermal reservoir and the infrastructure in place through Ngāti Tūwharetoa Geothermal are unique to Kawerau, and we are so pleased to invest more into this smart, natural solution,” Takla said.
"Beyond the positive environmental impact, the project also delivers socio-economic benefits to the local economy with the partnership helping to fund local marae, housing, and education initiatives."
The New Zealand Geothermal Association (NZGA) acknowledged the significance of Essity’s Kawerau project as a world-leading example of industrial decarbonisation. "By replacing fossil fuels with geothermal steam, this project demonstrates how New Zealand businesses can achieve energy security while significantly reducing carbon emissions," said Kennie Tsui, NZGA Chief Executive.
"Geothermal energy plays a critical role in supporting our industries to transition to a low-carbon future, and the success of this project showcases the potential for geothermal to deliver reliable, renewable energy for essential manufacturing processes."
To celebrate the mill’s upgrade, Essity commissioned local artist Sarah Hudson (Ngāti Awa, Tūhoe and Ngāti Pūkeko) to create two bespoke designs for the limited-edition packaging of Tork paper towels, one for the T4 conventional toilet roll and the other for the H2 hand towel.
Hudson’s father and grandfather worked in the sector, and her sister is currently employed at the Kawerau Mill, making this project special to her.
"My whānau has a long history in pulp and paper production," explained Hudson. "Growing up in Whakatāne, I’ve always felt connected to this whenua and the resources it provides. My designs celebrate the unique geothermal energy that powers the Kawerau Paper Mill – one draws on the natural elements, symbolising sustainability, while the other reflects the swirling steam that makes this world-first project possible."
"It’s an honour to contribute my mahi to this project and support the future of sustainability in this industry," she concluded.
Alongside celebrating world-first innovation in Kawerau, 2025 also marks 70 years of manufacturing excellence for Essity in the region.
