''This product takes a small amount of sidestream material from a tree and turns it into a very valuable item.
''Novel uses like this can change the profitability of some forestry crops and have the potential to create a whole new type of short rotation oil/chemical producing crop,'' Mr Gaunt said.
Paul Greaves, from ForestPlus Oils, was thrilled with the recognition. ''The vacuum distillation technology we've developed has never been used before, and it has some definite advantages compared to other techniques. The award is recognition of that,'' he said.
ForestPlus Oils' mobile still, based near Beaumont, was producing just over 60 litres of oil a week.
The company was looking at other options, including different species, some for DoTerra and some for itself.
Long term, it hoped to work with farmers in cropping partnerships, with plantings specifically done to grow trees for oil. It was also keen on getting some investment in the business, Mr Greaves said.
The awards are the only timber design award in New Zealand and are run by NZ Wood, the promotional arm of the forestry industry.