GULL’s success confirms investment in biofuels makes Sense

7 February 2010

BANZ MEDIA STATEMENT

GULL’s success confirms investment in biofuels makes good sense

New Zealand’s biofuels sector is the latest ‘good news’ bioenergy story with more to come says the Bioenergy Association of New Zealand. Support to the sector from the Government’s Biodiesel Grants Scheme has seen growth in production and take-up across the country from tourist operations on land and sea to fleet operators of trucks and buses. Adding to that Gull’s ability to bring biofuels to the forecourt has been a significant step forward in making biofuels mainstream.

Speaking today, Mr Brian Cox, Executive Officer of the Bioenergy Association (BANZ) said Gull’s experience (http://www.scoop.co.nz/stories/AK1102/S00259/biofuel-sales-reach-new-record-levels.htm) is great news and that it is one mirrored across a small but growing sector.

“When fuel is hitting $2 per litre these are exciting times for the biofuels sector. The figures from the Government’s Biodiesel Grants Scheme indicate that sales have grown 5 fold in the past year. In uncertain economic times this kind of growth is welcome news. Our Members tell us that their order books are filling up and in some cases demand for biodiesel is out stripping supply”. Mr Cox said.

He added, “Of course we wouldn’t have got to this position without the Biodiesel Grants Scheme and the ability it gives producers to grow in the early stages. It’s like any sector, as it finds its feet and builds a customer base it needs support. Through the financial support of the Grants Scheme some producers have been able to develop their capability to produce biofuel for exacting clients like Gull. However further investment is needed if the sector is going to expand to meet the growing demand for fuels. It’s a really positive and productive investment and can contribute to national economic growth”.

“What the sector needs now is assurance from the Government that the Scheme will be extended. Extension is all about giving confidence to the market. Several producers have more plant poised to come on line but in today’s economic climate investors are jittery and need to see some longer term commitment on the Grants Scheme. This would help fuel retailers like Gull expand to meet further customer demand.”

Mr Cox explained the significant impact that today’s producers and users were likely to have on the future use of biofuels in New Zealand. Today’s producers using feedstocks of used cooking oil, tallow or canola are laying the ground for the future. They are allowing fuel suppliers like Gull build a strong customer base, securing customer loyalty and giving credence to the ‘clean green image’ we in New Zealand hold so dear. Today this reputation is a novelty but tomorrow it will be a requirement. That’s already the case with many tourists that come to New Zealand for example.

The Bioenergy Strategy released in September last year indicated that while bioenergy now makes up 8.5% of consumer energy used in New Zealand, there is evidence that there is significant as yet unrealised economic wealth from the production and use of bioenergy. The Strategy promotes the future with a nationally significant bioenergy business sector, built on New Zealand’s capability and expertise in growing and processing wood-crops and converting organic by-products to energy, which by 2040 supplies more than 25% of the country’s energy needs, including 30% of the country’s transport fuels.

Mr Cox went on to note that the energy story is just a fraction of the bio-opportunities on offer. “This is not just about energy” Mr Cox said, “this is about economic growth, job creation, minimising emissions associated with climate change, waste reduction, the development of bio-products and maximising resources for highest return.”

“One exciting example is the wider opportunities that the development of biofuels promises in the future. Our production focus at present is on what we call ‘conventional’ fuels – fuels made from used cooking oil, from canola and tallow. The future, as set out in the Bioenergy Strategy is wood. In the future so called ‘advanced’ biofuels will be produced from wood. That’s the focus of key players in the sector internationally. Several oil companies are already making billion dollar investments in wood research programmes.”

“New Zealand is blessed with wood resources and so stands to have a big future in this area. The added excitement comes when we look at the co-opportunities. I’ve said many times it’s not just about energy. Looking to the future, biofuels from wood opens up a whole new world of green chemicals.”

“Gull is leading the way and the success of its sales of biofuels shows that the public is right behind using environmentally sound transport fuel.”

ENDS

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