15 Feb 2013

Biodiesel projects focus on supply of raw materials

7:26 am on 15 February 2013

An alternative energy body says new developments in New Zealand's emerging biofuels industry put pressure on the primary sector to ensure a reliable supply of raw materials.

Fuel company Z Energy has announced it's looking at resurrecting a biodiesel operation that uses tallow from meat processing.

Z Energy and paper producer Norske Skog are also seeking Government backing for a plant to turn wood waste into transport fuels.

And a new company, Green Fuels New Zealand, has bought Solid Energy's Canterbury biodiesel plant to continue supplying transport operators in the South Island.

Bioenergy Association executive director Brian Cox says those developments will increase confidence in the future of biofuel production in New Zealand.

Mr Cox says a segment of the market is quite stable and solid, which should give confidence to the rural sector, and a reliable supply of feedstocks now needs to be ensured.