Z to open biofuel plant

Z Energy’s $26 million commercial scale biofuels plant is set to open soon. The plant, which is the first in the country, is part of the fuel company’s aim to become part of the solution to reducing emissions. Sheena Thomas, Z’s senior communications advisor, says: “This is a small but significant step to our low carbon future. If we want to meet our climate change goals we've got to start somewhere.” Z’s Bio D will cost about two cents more than its standard diesel, following a drop in oil prices and a rise in the price of tallow - the animal fat the biofuel is made from. However, the increased price hasn’t stopped companies supporting the initiative from its early stage. Fonterra, Fulton Hogan and New Zealand Post had all signed up early and were prepared to pay a premium for the biodiesel. Thomas says businesses were recognising that commitment to greener energy was not “nice to have but an absolute necessity”. Of the $26 million invested, $22m had gone to the plant in Wiri, Auckland, with the remaining $4m at terminals in Wiri and Mount Maunganui, where the pure biodiesel would be mixed with mineral diesel to produce a 5 per cent blend. Around 20 million litres of biodiesel will be produced each year, but additional storage tanks meant there was the capacity to double that amount. Thomas says that Z is committed to ensuring the purity of the diesel it produced,with extra processes and checks in place at critical points of each batch. The plant has an on-site lab to test the fuel, which was also independently tested, and the Ministry of Business, Innovation and Employment routinely tests all fuel at service stations. The B5 blend will be available in the Auckland, Bay of Plenty and Waikato regions from the middle of the year.