Z Energy is installing a biodiesel distillation column at New Zealand’s first commercial-scale biodiesel plant in Wiri, Auckland as it progresses commercial distribution of the product through its network.
The plant, which will move into the testing phase early next year, will turn inedible tallow, a by-product of the New Zealand meat industry, into 20 million litres of biodiesel a year, with the potential to scale production up to 40 million litres a year.
Z’s biodiesel will be available to customers in the Auckland, Bay of Plenty and Waikato regions towards the middle of 2016.
Z’s General Manager of Supply and Distribution, David Binnie, says that the biodiesel distillation column will ensure a highly refined, pure finished biodiesel.
“The ability to refine the biodiesel by distillation enables us to use a plentiful local resource to produce biodiesel that exceeds New Zealand specifications,” says Binnie.
Binnie says fuel burned for transportation makes up around 17% of New Zealand’s greenhouse gas emissions.
“This means Z is currently part of the climate change problem, and we’re not comfortable with that,” says Binnie.
“We want to be instead at the heart of the solution. This $26 million investment is a step towards reducing New Zealand’s reliance on fossil fuels,” he says.
Binnie says that Z invested in this plant, even in the absence of a government incentive, because there was customer demand for lower carbon options when procuring diesel fuels.
“What enabled us to invest in this venture was the commitment from some of our large commercial customers, such as Fonterra, who are trying to find ways to reduce their carbon emissions,” says Binnie.
“This is an example of New Zealand companies working together to make a difference in our backyard,” says Binnie.
Fonterra’s General Manager of National Transport and Logistics, Barry McColl, says the Co-operative is pleased that its commitment is helping Z to bring this capability to New Zealand while reducing its emissions.
“Fonterra is committing to reducing environmental impacts across all of our operations,” says McColl.
Transporting more than 18 billion litres of milk around the country every year requires a lot of hours on the road – our fleet travels more than 90 million kilometres over the year – so we support initiatives like this that help to reduce our emissions,” he says.
Z says it’s B5 biodiesel blend (up to 5% biodiesel blended with ordinary diesel) works across commercial, industrial and retail diesel vehicle fleets.
“Z’s B5 biodiesel is a ‘drop-in’ fuel that doesn’t require customers to do anything differently with their diesel vehicles because it meets the same strict fuel specifications as ordinary diesel,” says Binnie.
