$21 million New Zealand biodiesel plant plans announced

Z Energy has revealed plans to build a $21 million (€15 million) domestic biodiesel plant that will produce fuel from inedible tallow feedstock.

Wellington Mayor Celia Wade-Brown welcomes the announcement, as it signals a reduction in the reliance on fossil fuels and will help New Zealand address climate change concerns.

The Wellington-based company hopes to produce 20 million litres of sustainable biodiesel from tallow every year, using approximately 10% of the country's inedible tallow production.

The mayor says: 'In light of the recent IPCC report, on the severity and costs of adaptation to climate change, we need to support innovation from Z and others in the business community toward a low-carbon future for New Zealand. In addition to having more efficient vehicles on the road, fuel switching to bio-fuels, hybrids and electric vehicles will be essential to help us achieve the emissions cuts recommended by the IPCC.'

The plant, which will be built in Auckland, will receive its investment over the 2015 financial year. 

Chief executive Mike Bennetts said the Z board has approved the project, but it is still subject to regulatory and resource consents, which include approvals from competitors to construct the blending facility at the Wiri fuel terminal.

Inedible tallow feedstock is essentially beef fat. The plans for the plant will satisfy New Zealand and European fuel specifications.