New Zealand biofuels facility given new lease of life

Two former managers of New Zealand state-owned Solid Energy have purchased the company’s biofuels division for an undisclosed sum.

Martin Johnson and Karl Hatton will rename the division Green Fuels but the diesel brand will remain Biogold. Long-term client Stark Brothers and a fourth silent partner were also involved in the purchase.

Production at the facility has stagnated at 600,000 litres per year but Johnson believes it can be obtaining levels closer to 1 million annually. The pair have begun reducing overheads by running operations themselves, including making small truck deliveries of sold product.

‘Both Karl and I are passionate about making and supplying environmentally friendly fuels and when the opportunity came to purchase the business both of us jumped for it,’ Johnson was quoted as saying.

Solid Energy continues its move away from renewable energy after it blamed lack of continued financial subsidies from the government. It has been divulged that the company spent over NZ$100 million (€63.3 million) on renewable energy projects over the past few years.