New Zealand energy company to close biofuels division

New Zealand-based natural energy provider Solid Energy (SE) is weighing up proposals that may see the sale of its biodiesel division.

The state-owned business has mooted the potential sale or even closure of subsidiaries Biodiesel New Zealand (BNZ) and wood pellet company Nature’s Flame.

This all comes as part of a major restructuring of SE amid claims neither of the renewable businesses have yet to make a profit despite nearly NZ$100 million (€63.4 million) of investment.

One feedstock farmer, Colin Hurst of Waimate, was quoted as saying: "I knew they were selling the business, but I'm quite shocked that they are thinking of closing. It's left us in the lurch because once you commit to growing rapeseed, it is liable to stay in the ground for up to 10 years before you can grow another like brassica.’

BNZ has assured all feedstock growers that contracts for autumn and next spring will still be honoured.

SE CEO Don Elder blames the lack of government subsidies, which finished last year, as the reason the projects are now currently not profitable.

‘Biodiesel is a business we no longer believe we should be in and we want out as soon as possible. Nobody knows better than us, coming from the industry, how hard it has been to make renewables economic,’ he adds.