The state-owned enterprise said on Wednesday its subsidiary Biodiesel New Zealand, which produces blended fuel from oil seed crops, is not performing, so it is splitting up and putting pieces up for sale.
Solid Energy says it is also is looking at exit strategies from the wood pellet business Nature's Flame, having already closed two plants, because the domestic market is not working well.
The review of its businesses is part of a major overhaul major steps as it faces a $200 million fall in revenue this year.
The company is cutting jobs at its East Huntly coal mine and head office and suspending operations at the Spring Creek mine on the West Coast.
Bioenergy Association executive officer Brian Cox says the Solid Energy has been a leader in the sector and very active in its support, so the decision will have a large impact on his industry.
Director of Aquaflow biofuel company Aquaflow Nick Gerritsen says Solid Energy's retreat from the renewable sector will send it backwards at a time when the country most needs it to maintain its global reputation.
