A New Zealand business is planning to make millions of dollars by turning pine sawdust into carbon for use in water filters and industrial processes.

Carbonscape claims its activated carbon product is 60% better quality than carbon currently on the market.

It has taken about 18 months to hone the production process, which has been supported by government enterprise funding

The company initially announced two years ago that it had patented the first technology to turn forest waste into carbon, which could be used to improve soil quality.