Biofuels the solution of a looming $2.50/litre fuel cost

8 March 2011

BANZ MEDIA STATEMENT

Invest in Biofuels says BANZ – the solution of a looming $2.50/litre fuel cost

As prices at the pump heads to the $2.50 mark, New Zealand’s biofuels producers are ready and waiting to offer Kiwi motorists an environmentally sound and economically attractively priced fuel. New Zealand’s biofuel producers are already working hard to keep up with demand as the popularity of biofuels continue to grow. To meet the additional quantities needed we should be investing in the conversion of wood into advanced biofuels and so be able to meet further price increases.

Speaking today, Mr Brian Cox, Executive Officer of the Bioenergy Association of New Zealand (BANZ) said that we should be getting ready to produce our own biofuels from wood. Mr Cox added, “For many motorists the $2 level has been a bit of a psychological threshold. Now as motorists look at it being $2.50 we should be looking seriously at producing biofuels from our own forest harvest wastes.”

Mr Cox went on to add, “New Zealand’s biofuels sector is flourishing with a fast growing dedicated customer base producing fuel from conventional feedstocks of cooking oil, tallow and canola. Extension of the current Government grants for the production of biodiesel would allow us to meet this increasing demand. That would also then position us well to transition to the production of transport fuel from the very large volumes of waste wood available.”

“From our current forest harvesting we throw away around 20% of a tree. This can be used to produce biofuels such a bioethanol and biodiesel. Internationally the technology is entering the commercial pilot phase of development and so we should be working with those technology developers to attract their next investment to New Zealand. ‘

“Producing biofuels from existing forest harvest wastes would provide additional revenue for forest owners. I’m baffled as to why so far, forest owners appear not to be maximising the opportunities to make more money from their forests. On top of the potential additional revenue from residues, every farmer has areas of their land where they can grow trees for logs, and lumber with the harvest residues being used to produce biofuels. Research shows that a farm could use around 20% of its land for forestry and not affect normal farm operations. Or they could grow short rotation tree and grass crops solely for energy. Again this must be a money spinner for farmers and a significant economic growth driver for New Zealand. “

“Now is the time for the Government to include transport biofuels from wood within the economic growth framework. It would improve the financial returns for forest and land owners, employment for forest contractors, and a locally produced transport fuel which is immune from any crisis in the Middle East. Its time New Zealand woke up to the home grown opportunities it has. Today it’s the Middle East - tomorrow something else – but regardless of the source, there will always be some outside influence on our energy costs. Let’s take this opportunity of claiming back some control”.

ends