LanzaFuels Biofuels Plant On Hold

LanzaFuels New Zealand Limited today announced that it has put its plans for local biofuels production plant on hold. LanzaFuels has been investigating the feasibility of a maize to fuel ethanol plant in response to the 3.4% biofuel sales obligation announced by the NZ Government in February this year.

LanzaFuels spokesman Howard Moore commented. “Brazilian prices for fuel ethanol are currently at historically low levels and so, combined with the strong New Zealand dollar, the cost to import ethanol is now lower than it can be made locally. This situation has developed recently, and until future prospects become more encouraging, the Company considers it is unwise to invest further in the project”.

LanzaFuels has been planning to build a large-scale ethanol production plant using locally grown maize, and powered by wood waste. It planned to target land currently used for beef and sheep farming. This would have provided higher returns to farmers who are not benefiting from current high dairy prices. Moore says “this would have had a double benefit for the environment by both reducing fossil fuel use and reducing agricultural methane emissions”.

ENDS

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