An Auckland biofuels company is gearing up its production to meet an anticipated increase in demand for biodiesel.
The company, Ecodiesel, has been producing about 200,000 litres a year of the fuel from tallow, a by-product of the meat processing industry, at its pilot plant in Onehunga.
The fuel has been used in transport company trials and bought by oil companies to use in blended fuel sold at the pumps.
Ecodiesel has begun construction of a full commercial-scale plant which will allow it to produce up to 20 million litres a year.
Founder and chief executive, Gary Brockett, who developed the technology, is confident there will be demand for the fuel.
He says it is one of the most sustainable of the biofuels because it uses a by-product not a food crop.
Ecodiesel is looking for outside investment to provide more funding for its expansion, with a $4.5m convertible notes offer.