Z doesn’t produce oil or gas, so we don’t have to limit the products we sell to protect billions of dollars of upstream investment. We are here to provide transport fuels to Kiwi consumers and businesses and we are ambivalent about whether that fuel is oil, gas, or a bio product.
We are currently exploring two main sources of biofuel. The first is a project that will enable Z to produce biodiesel from tallow (inedible fat from meat products), and the second is a longer-term project to turn wood waste into biofuels.
The Wiri biodiesel project is New Zealand’s first large-scale biodiesel production facility which will produce 20 million litres of high quality biodiesel per annum. The plant, which converts animal fats and used cooking oil into biodiesel, is currently under construction at Wiri, Auckland and is due for completion around the middle of 2015.
We have also worked with Norske Skog to investigate using second generation biofuels technology to process wood waste from the forestry sector into biofuels. This wood waste is the stuff left over after the trees have been removed from the forest and processed in the mill. While technically and economically challenging, it is possible to convert this waste into a form of ‘green crude’ that can be refined into petrol, diesel, and potentially even jet fuel.
Z continues to undertake work to test if this can be done in a way that is financially viable and that produces fuel that meets the very highest quality specifications.