16 Feb 2009

Biodiesel company pushes ahead with expansion plans

6:43 am on 16 February 2009

Biodiesel New Zealand is to push ahead with plans to increase capacity fourfold at an existing facility in Christchurch, to four million litres a year.

The company is owned by Solid Energy. In recognition of economic conditions, it says it's reviewing the scale of its future plans, which had been to increase to 15 million litres a year.

Solid Energy says the biodiesel market is continuing to expand, but it's taking a prudent approach to its business model, in light of the falling price of fuel.

A spokesperson says biofuel pricing is tied closely to its conventional equivalent, but a recent sharp dip in petrol prices is believed to be only temporary.