High hopes for biodiesel scheme

WILL HINE/149145

THE GOOD OIL: Otago Polytechnic Centre for Sustainable Practice manger Steve Henry is promoting the formation of a biodiesel users consortium in Queenstown.

Relevant offers

The promoters of a pioneering biodiesel project earmarked for Queenstown hope the project could be up and running by Christmas.

About 30 businesses attended an Otago Polytechnic Centre for Sustainable Practice workshop in the resort yesterday, where they were told the pilot programme would be the first of its sort in the country.

Mainly comprising Queenstown tourism operators, the group was invited to form a consortium that would buy biodiesel for use in its vehicles, boats and plant.

Queenstown Lakes Mayor Clive Geddes and Energy Minister Gerry Brownlee have both lent their support to the idea.

Independent expert Andy Campbell told the audience a B20 blend of 20 per cent biofuel and 80 per cent diesel would work in the alpine climate but could require additives in winter.

Harmful vehicle emissions reduced about 10 per cent when B20 was used across a range of applications, he said.

A B20 blend delivered to Queenstown would cost about the same as diesel at the pump, because of a 42.5c per litre subsidy available through a government grant scheme.

But this would still cost more than the fuel prices negotiated by large companies, which were often 2 to 7c cheaper than pump price.

"It doesn't sound like the deal of the century on a cost basis but how can we make it acceptable?" Mr Campbell asked the operators.

Kiwi Discovery and Queenstown Rafting general manager Tim Barke said he would treat the extra margin as a marketing cost, because the use of biodiesel would be a selling point for customers.

Connectabus owner Ewen McCammon expressed interest in the scheme, but said that if he joined the consortium, he would start by testing the fuel in just one of his vehicles. Engine manufacturers would honour a warranty if it broke using a 5 per cent blend of biodiesel but many would not if the blend was 20 per cent, he said.

However, Energy Efficiency and Conservation Authority senior transport adviser Liz Yeaman pointed out it would be a chicken-and-egg situation while biodiesel usage was in its infancy.

Companies would not want to use the fuel until engine manufacturers guaranteed their warranties, while engine manuafacturers would not amend their warranties until companies started using the fuel.

Operators' diesel usage volumes will now be collated, before a supply contract is tendered and storage arrangements confirmed.

All going well, the plan could be put into practice by Christmas time.

- © Fairfax NZ News

Newest First

Oldest First