What are Biofuels?

Biofuels is a generic term for fuels that can be produced from or are made up of a renewable material of plant or animal origin. Often they are substitutes or partial substitutes for fossil or mineral fuels. Biofuels used in transport are typically bioethanol which is used as a petrol substitute and biodiesel which is used as a diesel substitute. Biodiesel can also be used in residential and industrial space heating.  

Biofuels have the major advantage of not contributing to overall greenhouse gas emissions.

What is biodiesel?

Biodiesel can be produced from any vegetable oil or animal fat and used as a substitute or partial substitute for mineral diesel. To produce biodiesel, these fats or oils are chemically converted to esters that have properties similar to mineral diesel. Biodiesel is often blended with mineral diesel and blends of up to 5 % in mineral diesel are suitable for use in diesel engines without modification. Higher blends may be used in dedicated fleets.

In New Zealand, biodiesel is produced from tallow and rape seed (Canola).  On a smaller scale, some biodiesel is being produced from Jatropha plants and Algae.  Biodiesel can also be made from used cooking oils and fats (fuel used directly is not biodiesel).

What is bioethanol?

Bioethanol is an alcohol made from sugar, starch and products containing sugars and starches, through a process of fermentation and distilling, and used as a substitute or partial substitute for petrol. Bioethanol has properties that are similar to petrol so it is often blended with petrol. Bioethanol has been introduced as a low level blend i.e 3% to 5% and 10% in some petrol, the current maximum level allowed is 10%. Higher blends may be used in dedicated fleets.

In New Zealand, bioethanol is being produced from whey.  Other options include cellulosic materials like waste wood, and straw and even food waste.

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How are they made?

What is the difference between first and second generation biofuels?

First generation biofuels are produced from sugars, starches, vegetable oils or animal fats from proven technology. Examples include biodiesel from tallow and bioethanol from whey.

Second generation biofuels generally refer to new methods of producing biofuels.   They are not yet ready for commercial development but are the subject of extensive research and development internationally.  Research is also active in New Zealand on Second Generation Biofuels (see here for more details).  Examples include the conversion of plant lignin and cellulose into fuels by enzymes and the gasification of biomass material followed by a “gas to liquid” Fischer-Tropsch process.  Biomass that could be used in this process include all types of trees, grasses, agricultural plant wastes, straw and algae.

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IEA Liquid Biofuels Activities

Task 39 - Commercialising Liquid Biofuels from Biomass

• Newsletter

More details coming soon

 

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Overview of Liquid Biofuels in New Zealand

"Innovation Knowledge and Skills in New Zealand Liquid Biofuels" - click here to download

 

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Summary Table of Key Players in New Zealand Biofuels Market

The following summary table provides some key details of the leading players in the Liquid Biofuels Sector in New Zealand. For a one page profile on each company/organisation click on the name as listed.

The following details are available for each of the key players listed. Click on the company name to view their profile.

AECOM	Beca AMEC	Flo Dry Engineering	NIWA	UniServices	Convertech
AES	Biodiesel NZ	GNS Science	NZ Ester Fuels	University of Canterbury	Environfuels
Ag Research	Carbonscape	IPL/Biofuel Testing NZ	Scion	URS	NZ Green Fuel Technologies
Anchor Ethanol	Cawthron Institute	Lanzatech	Solvent Rescue/Solray	Vertichem	Pukeawa Biofuel
Aquaflow Bionomic Corp	Ecodiesel	Massey University	The Proprietors of Taharoa C Block	Biosfuel

 

For a pdf of this summary table and all the company profiles click here.

Company Profile Contact: Alec van Rossen Phone: +64 (0) 9 379 1200 Website	Core skill: * Engineering services for planning and construction of renewable fuel facilities.
	Core production acitivity: * Engineering services for planning and construction.
	Leading edge: AECOM has an established reputation for excellence for professional support services in both engineering/technology and management to a broad range of markets, including renewable energy, established energy transportation facilities and environmental.
AES Company Profile Contact: Gavin Hedley Phone: +64 (0) 9 238 0683 +64 (0)21 740 490 Email	Core skill: * Technical skills and marketing of pyrolysis. * Bioenergy technologies for forest and other residues recovery and utilisation.
	Core production acitivity: * Ankur gasification representation 10Kw to 2.2Mw * Electricial generation 30 Kw to 5.6Mw heat energy. * ABRItech Bio oil/ bio char systems - 1 - 100 TPD.
	Leading edge: AES has working demonstration technolgy for bio-oil in New Zealand. We can practically demonstrate, using your feed stock, the manufacture both of bio-oil and biochar in an actual, commercially scaled plant.
Ag Research Company Profile Contact: Heather Went Phone: +64 (0) 6 351 8035 Website	Core skill: * Recombinant protein expression. * Enzyme characterisation and enhancement. * Plant technology and product development.
	Core production acitivity: * Cost-effective, scalable, biofuel enzyme production.
	Leading edge: AgResearch's biofuel enzyme manufacture technology will be compatible with the full range of ligno-cellulosic feedstocks coupled with algal, yeast or bacteria- based biorefinery processes. Using plants to produce enzymes will be more cost-effective, require minimal capital investment and be rapidly scalable in response to demand compared to building new, high-cost infrastructure for fermentation-based enzyme manufacture.
Company Profile Contact: Peter Motion Phone: +64 (0) 9 374 9000 Website	Core skill: * Fermentation Technology. * Distillation Technology. * Marketing.
	Core production acitivity: * Ethanol from Dairy Whey.
	Leading edge: Whey fermentation - an opportunity to further process a waste material into ethanol.
Aquaflow Bionomic Corporation Company Profile Contact: Paul Dorrington Phone: +96 (0) 3 543 8227 Website	Core skill: * Wild Algae harvesting technology. * Pond water quality remediation. * Processing plant design. * Green Crude processing technology. * High value chemicals.
	Core production acitivity: * Remediated water. * Partnered Biodiesel from Algae Biomass.
	Leading edge: Aquaflow provides a low cost method of wild algae biomass extraction from existing waste water facilities. The algae extraction process improves the waste water quality by significantly reducing nitrogen and phosphorous loadings, BOD and coliform levels. The biomass can then be used in agricultural/ aquaculture applications, cogeneration/ methanol fuel, or biofuels feedstock production.
Beca AMEC Company Profile Contact: Paul Thomas Phone: +64 (0) 7 577 1165 Website	Core skill: Engineering, consulting and project management services to the biofuels and bioenergy facilities, and forest industries sector, in Australasia.
	Core production acitivity: * Bio Diesel, oil seed rape, used cooking oil and related products and markets. * Design of cellulosic ethanol and advanced biofuels facilities * Technical services (Process definition and innovation, process scale-up, mass and energy balances, simulations, optimisation) * Consulting services (Feedstock supply and demand, technology review, cost analysis and capital effectiveness) * Environmental services and planning (site selection, permitting, compliance) * Project services (feasibility studies, due diligence, detailed engineering and design, EPCM, commissioning)
	Leading edge: Beca AMEC is an established leader in the design of biomass handling and processing systems. Drawing on the extensive experience of parent company AMEC, we can provide a full range of services to successfully scale up technologies from R&D bench scale to pilot plant and to commercial scale deployment for renewable energy facilities.
Biodiesel New Zealand Company Profile Contact: Andrew Simcock Phone: +64 (0) 21 667 199 Website	Core skill: * Used oil collection. * Agronomy and agricultural activities supporting oil seed rape (OSR). * Production technology & design. * Logistics and operational support. * Sales & Market Development.
	Core production acitivity: * Bio Diesel, oil seed rape, used cooking oil and related products and markets.
	Leading edge: Biodiesel New Zealand has been making and selling high quality bio diesel derived from used vegetable oil (UCO) for over three years. More recently, we have been growing oilseed rape (OSR) for biodiesel production. We are the leading supplier of bio diesel in NZ having a multiple feedstock, fully integrated, market led strategy to increasingly supply the NZ diesel market with quality bio diesel promoting benefits & scale relevant to today's key markets.
Carbonscape Company Profile Contact: Forrest Tyrrell-Baxter Phone: +64 (0) 3 579 2274 Website	Core skill: * New Process Development * Clean Technology Commercialisation * Emerging carbon emissions reduction GHG, CDM markets * Industrial Micro-wave Systems
	Core production acitivity: * Biochar, bio oil, syngas, activated charcoal.
	Leading edge: Cabonscape's state of the art process has advantages over traditional pyrolysis methods by rapidly producing high grade charcoal efficiently and economically. The process also produces valuable byproducts of biooil fuel and syngas, which can be combusted to release industrial heat or electricity energy.
Cawthron Institute Company Profile Contact: Mike Packer Phone: +64 (0) 3 548 2319 Website	Core skill: * Algal Production Technology * Algal Strain Identification * Algal biomass generation * Waste to Fuel generation
	Core production acitivity: * Biocrude from integrated CO2 capture
	Leading edge: Selection and husbandry of micro algae for fuel generation and CO2 Capture.
Ecodiesel Company Profile Contact: Gary Brockett Phone: +64 (0) 9 636 4740 Website	Core skill: * Production technology * Plan design * Plant construction
	Core production acitivity: * Biodiesel from Tallow * Small scale standalone plants.
	Leading edge: Ecodiesel specialises in the conversion of difficult lipid substrates, such as tallow to Biodiesel at a low capital cost. Ecodiesel uses tallow but the technology also allows the conversion of other low cost feedstocks. Ecodiesel plants are standalone and do not require any downstream service providers as all byproducts are effectively processed in the plant. This makes the technology particularly attractive to small or remote markets.
Flo-Dry Engineering Company Profile Contact: Tissa Fernando Phone: +64 (0) 9 415 2330 Website	Core skill: * Research & Development * Basic Design & Detailed Engineering * Plant Design * Plant Construction / Maintenance / Operation
	Core production acitivity: * Rendering Plant Packages * Waste Water Plant Packages * Biodiesel Plant Packages * FEDW Plant Packages
	Leading edge: In-house developed continuous Reactive Distillation Process based Biodiesel plant capable of converting most difficult feedstocks at a competitive economic conversion cost.
GNS Science Company Profile Contact: Forrest Tyrrell-Baxter Phone: +64 (0) 3 579 2274 Website	Core skill: * Enrichment and isolation of novel extremophilic bacteria with current focus on cellulolytic thermophiles
	Core production acitivity: * Biochar, bio oil, syngas, activated charcoal.
	Leading edge: The Geomicro-biology group targets and isolates novel bacterial isolates from NZ's unique geothermal systems. Because of our location and pre-existing legal agreements with landowners for the biodiscovery and application of novel micro-organisms, we are able to easily refine enrichments while providing the security.
IPL/Biofuel Testing NZ Company Profile Contact: Ivor Reyes Phone: +64 (0) 9 432 7744 Website	Core skill: * Biofuel analysis and testing to regulatory limits * Method Development
	Core production acitivity: * Biofuel analysis and testing to regulatory limits * Biofuel blend test runs
	Leading edge: BTNZ is involved with the development and amendment of methods for the analysis of NZ biofuels. BTNZ is a member of the Bioenergy Association of New Zealand .
Lanzatech Company Profile Contact: Forrest Tyrrell-Baxter Phone: +64 (0) 3 579 2274 Website	Core skill: * Fermentation Technology * Technology Innovation * Plant Design * Waste to Fuel generation
	Core production acitivity: * bio-mass syngas * Biofuel waste gas feedstocks
	Leading edge: A key advantage of the Lanzatech process is that it is "feedstock agnostic" i.e. it can use almost any organic waste or biomass allowing it to focus on those that are available in high volumes, are low value and are non food (e.g. municipal waste, organic industrial waste (tyres), waste wood).

 

 

Massey University Company Profile Contact: Atillio Pigneri Ph: +64 (0) 6 350 5600 Website	* Process development and optimisation * Energy analysis * Techno-economic assessment * Infrastructure planning	* Biofuels Research	Massey University Centre for Energy Research (MUCER) and Massey University at large represent a leading knowledge base on bio-energy engineering
NIWA Company Profile Contact: Rupert Craggs Ph: +64 27 681 1926 Website	* Fundamental research on algal production, harvest and biofuel conversion. * Desk-top studies on suitability and economics of HRAP for wastewater treatment, CO2 biofixation and biomass use as fuel, feed or fertiliser. * Pilot and large-scale demonstration of HRAP and CAP technologies with industry partners. * Design of HRAP for wastewater treatment and or algal production. * Design of CAP for biogas recovery from wastewater.	* Integrated energy efficient wastewater treatment and resource recovery systems. * High Rate Algal Ponds. * Covered Anaerobic Ponds.	NIWA has pioneered CO2 addition to wastewater HRAP for enhanced treatment and algal production and has over 12 years experience with the design and operation of HRAP in New Zealand. NIWA has developed the Covered Anaerobic Pond (CAP) to cost-effectively recover energy from wastewater biomass as biogas methane and has 5 years experience with working with end-users to apply this simple technology.
NZ Ester Fuels Company Profile Contact: Andre Hamman Ph: +64 274 720 964 Website	* Production Technology * Plant Design & Fabrication * Plant Construction & Commissioning * Development of innovative pilot scale concepts to industrial scale operation	* Biodiesel (Used Cooking Oil & Tallow) * Conversion of degraded feedstocks using novel technologies	Strong technical team with proven ability to deliver practical and cost effective solutions.
Scion Company Profile Contact: Michael Jack Ph: +64 (0) 7 343 5601 Website	* NZ woody biomass resource. * Feedstock pretreatment technologies. * Biomass conversion technologies. * Energy modeling and life cycle assessment. * Plant and industrial biotechnology. * Biomaterials development. * Water and waste management technologies.	* Research & Development.	Scion's key advantage is the ability to carry out research and development across the entire biofuel production value chain including: * woody biomass resources development and logistics * pretreatment and conversion technologies for biofuels and co-products Assessment and mitigation technologies for improved environmental footprints of biofuels operations.
Solvent Rescue/ Solray Company Profile Contact: Wayne Harpur Ph: +64 21 356 794 Website	* High temperature water conversion * Continuous Energy Efficient reactor * Modular fully Scalable * Mark 2 plant operating and planning Mark 3	* Production of Crude Oil from Algae, Seaweed, Pulp, or Sewage Sludge.	Solray's key advantage is that the crude oil we produce is fully interchangeable with crude oil from normal fossil sources. Therefore no existing infrastructural changes to refineries, delivery systems, or end users are required. This feature is important to transport and aviation operations. Blends are not necessary.
The Proprietors of Taharoa C Block Company Profile Contact: Ken Hulls PH: +64 (0) 7 849 4911 Email	* Rapid propagation of using advanced laboratory based technologies. * Horticultural propagation. * Crop yield trials.	* Propagation of Miscanthus Gigantus for growing as a feedstock for production of wood fuel or liquid biofuels. * Commercial provider of long term biomass (for energy) supplies.	Taharoa C has imported Miscanthus and is currently undertaking 8 trials throughout New Zealand. Taharoa is interested in contracting for other trials and for the commercial supply of feedstock .
UniServices Ltd Company Profile Contact: Keith Jones Ph: +64 (0) 9 373 7522 Website	* Production technology. * Engine testing and design.	* Biodiesel production techniques (1st genera-tion). * Biofuel performance (engine) testing.	In keeping with University goals the intent of activity in the biofuels area is to be at the forefront of research. Developed technology and other capabilities will be made available to NZ industry to maximise the efficient use of biofuels in NZ.
University of Canterbury Company Profile Contact: Shushang Pang Ph: +64 (0) 3 364 2538 Website	* Advanced biomass gasification, pyrolysis and Fischer-Tropsch synthesis of liquid fuel. * Fundamental research and process simulation. * Process optimisation and design. * Feasibility studies.	* Education Research .	A 100 kW advanced steam-blown biomass fasifier has been developed and constructed. Hydrogen-rich (40vol%) syngas is produced. Cold model of the above gasifier is built for fluidynamics studies. A Fischer-Tropsch reactor is available for liquid fuel synthesis. Pyrolysis reactor is available for biofuel production.
URS Company Profile Contact: Gael Ogilvie Ph: +64 (0) 9 355 1330 Website	* Project management * Systems thinking * Engineering	* Life Cycle Analysis. * Sustainability assessment and labeling * Carbon footprints. * Environ-mental impact assessments. * Process engineering. * Chemical engineering.	URS staff have specialist knowledge of sustainability issues surrounding biofuels and have wide industry contacts in New Zealand.
Vertichem (formerly PurePower Global) Company Profile Contact: Ross Prestidge Ph: +64 (0) 9 632 1007 Website	* Processing technology development * Biomass production, harvesting and transformation to specialty chemicals and biofuels	* Technology development	Proprietary process for producing high-value specialty chemicals and ethanol from woody biomass, as opposed to other "cellulosic ethanol" processes that destroy or degrade the most valuable components of biomass in the singular pursuit of ethanol.
Biosfuel Ltd	No details provided by the company
Convertech Ltd	No details provided by the company
Environfuels Warren Holdren	No details provided by the company
NZ Green Fuel Technologies Ltd	No details provided by the company
Pukeawa Biofuel Ltd	No details provided by the company

 

 

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What and how much is being made in New Zealand?

New Zealand produces most biofuels from tallow (biodiesel) and whey (bioethanol).

Biodiesel – sources, details and annual production in New Zealand

Source Crop	Details	Quantities produced annually
Tallow	Tallow is an animal fat, which is a by-product of meat processing. Typically, tallow starts with the extraction of suet from a carcass. Suet is hard fat found in the neighbourhood of the kidneys and around some other organs. While suet can be used as-is, rendering suet removes impurities and also extends the shelf life. Once suet is rendered, it becomes tallow. As long as tallow is stored in an airtight container, in a cool environment, it can keep for an extended period of time. Further details about producing biodiesel from tallow can be found in this EECA Study "Biodiesel from Tallow", by Barry Judd, November 2002. Other details at Meat Industry Association of New Zealand (Inc). Process:	New Zealand produces around 150,000 tonnes of tallow per year , most of which could be made into biodiesel. Of this total, 120,000 tonnes is currently exported, principally for use in animal foods and chemicals manufacture for use in animal foods and chemicals manufacture, could be used for tallow ester manufacture. 30,000 tonnes are used domestically for stock food, soap, and margarine.
Rapeseed Oil (Canola)	Canola is a genetically engineered plant developed in Canada from the Rapeseed plant, which is part of the mustard family of plants. Rapeseed oil is a penetrating oil, to be used in light industry, not for human consumption. Process: Chemical transesterification	Annual Production volume, 1 million litres (currently) - 4 million litres from July 2009
Jatropha	The oil yielding plant Jatropha curcas L. is a multipurpose and drought resistant large shrub, which is widely cultivated in the tropics as a live fence. It produces a non edible fruit which has a high content of oil used to provide the feed stock to produce the biofuel. It has the additional plus of being grown on marginal or arid soils, and does not compete with traditonal food crops for land. The jatropha plan ca reach a height up to 5m and its seed yield ranges from 7.5 to 12 tonnes per hectare per year, after five years of growth. The oil content of whole Jatrpha seed is 30-35 % by weight basis. Process: Chemical transesterification	Early trials in Northland in NZ. 2 years before they will bear fruit.
Algae	Half of algae's composition, by weight, is lipid oil which can be converted into algae biodiesel. Various algae contain different levels of oil. Algae are easy to grow and can be manipulated to produce huge amounts without disturbing any natural habitats or food sources. All they need is water, sunlight and CO2. Process: Chemical transesterification	Advanced Research / trial stage. No production of fuel yet.
Used Cooking Oils	Used Cooking Oils are an excellent source of biodiesel and are otherwise a troublesome waste product. Removing contaminants such as water and managing the acidity are two key considerations. Several NZ suppliers are producing their biodiesel from used cooking fats. Process: Chemical transesterification	An estimated 5,000 tonnes annually of spent cooking oils is available in New Zealand.

 

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Bioethanol – sources, details and annual production in New Zealand

Source Crop	Details	Quantities produced annually
Whey	In New Zealand, bio-ethanol is made as a by-product of the dairy industry. Lactose is fermented in whey with yeast that converts this sugar into alcohol. The disposal of whey is a worldwide problem. Large quantities of whey are produced as a by-product during the manufacture of cheese and casein, and this must be disposed of or processed in an environmentally acceptable way. The key to the utilisation of this resource has been changing the perception of whey from a 'waste material' to an 'opportunity[' for further processing. Process: Ferrmentation using yeast	Anchor Ethanol produces approx 20 million litres annually but not curerntly for fuel use. 60% is exported. It's hoped that within the next few years 20% of the business will be transpiort fuel.
Salix (Willow)	Cultivating willow for biomass is new in New Zealand, although willow is being used overseas as a decidcated energy crop, mostly to fuel municipal heating plants and to produce heat and power. In this country, short rotation willow biomass has potential using transformational technology. Willow biomass can be used for production of ethanol for fuel, lignin for the production of biopolymers and xyulose for food sweeetening, with secondary uses as fuel in cogeneration plants (heat and energy generation) and stock fodder. Further details in Energy Farming with Willow in New Zealand Process: Hydroplysation and fermentation	Harvesting to begin in 2009/2010. Further details here
Waste Wood	Ethanol can be produced from forest wastes or purpose grown trees using enzymes and fermentation organisms. Chemical and physical treatments are often required as part of processing. Process: Fermentationusing enzymes and microbes	Demonstration; but potential could be mas much as 100 million litres annually
Straw	Thanks to advances in biotechnology, reasearch can now transform straw, and other plant wastes, into cellulosic ethanol. While chemically identical to ethanol produced from corn, cellulose ethanol exhibits a net energy content three times higher than corn ethanol and emits a low net level of greenhouse gases. Process: acid hydrolysis (or enzymatic hydrolysis) then fermentation using enzymes (converts cellulosic biomass to fermentable sugars), then microbial fermentation to produce ethanol and CO2.	Nothing active in New Zealand (desktop research only) .
Food Waste	Putrescible food waste could be used to produce lignocellulosic ethanol for fuel. Process: fermentation	Nothing active in New Zealand (desktop research only).

 

 

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Growth in NZ Biofuels

Analysis of the number of companies registered in New Zealand as having an interest in liquid biofuels provided the associated graph. Clearly the lead up to the introduction of the Biofuels Sales Obligation (in October 2008) stimulated the registration of a number of new companies.

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NZ Biofuels Potential

The New Zealand Advantage

On the back of the previous Government's Biofuels Sales Obligation several fledgling industry companies have invested several million dollars in good faith and in the belief that they had a sound future. Without doubt the change in approach has not suited all in the industry but one thing is clear, the present uncertainty will make it increasingly impossible for them to produce and/or market biofuels simply because the requirements are not clear. What this industry needs is a clear policy from Government so that business plans can be progressed.

The benefits of using liquid biofuels are many and more than justify a Government stimulus package to facilitate the growth of a New Zealand biofuels industry/market. The advantages to the New Zealand economy are two-fold: Firstly, they are internal to New Zealand and secondly, they have an impact on an international scale.

Within New Zealand the advantages are economic in nature - enhanced security of fueld supply; the reduction of raw materials sent off shore for processing; the securing of so-called 'green-collar' jobs; and the value maximisation of otherwise poor quality land. Furthermore, the advantages are environmental in nature - the reduction of CO2 emissions from transport, heating and stationary equipment applications will assist towards meeting our Kyoto commitments as well as making a tangible difference to the environment in which we live and breathe. Finally, the advantages have a health impact too - reduced transport emissions will have a positive effect on respiratory health. This aspect is pertinent to our major cities, were the rise in PM10 emission levels is of concern.

• Enhanced security of fuel supply - indigenous supply of fuel - security of supply especially for New Zealand essential services in times of need.
• Value added New Zealand raw materials that are currently exported - the processing of these resources on New Zeland soil bring economic growth advantages by reducing our reliance on imports and providing an increased local taxation base.
• Employment "green collar" jobs - the job creation potential is both direct and indirect via multiplier effect.
• Value maximisation of land - improved utilisation of land and value creation without rural communities eg rotational oilseeds, salix based cellulose to ethanol. Some biofuel crops may well also utilise otherwise poor quality and low value land thus providing increase value for land owners.
• Reduction of 'wastes' to landfill - many current bio-waste going to landfill are indeed bio-resources - dairy industry waste lipid streams, grease trap waste and some forestry waste is currently land-filled and yet could be converted into good quality biofuels.
• Mitigating Kyoto agreement liability due to reduced net GHG emissions from transport - Reduced CO2 emissions by direct displacement of fossil fuels.
• Positive health impact - grass roots improvements in workplace health, biofuels produce far less emissions and don't contain carcinogens and harmful polyaromatic cyclic hydrocarbons (true for both biodiesel and bioethanol). One only needs to refer to the Brazilian experience from using bioethanol and how it has helped to clean up the air in their cities.

From an international perspective, the advantages that investment in liquid biofuels offers to New Zealand are also economic in nature - international investment opportunities), and they are reputational (evidence to support the 'clean green' image New Zealand likes to portray aboard').

• Investment in R&D and biofuel manufacturing - developing an industry platform for the eventual deployment of 3rd generation technologies, ie establish a proven track record of capability that would provide for future investor confidence, growth of a strong knowledge base and enhanced skill set, eg ITO Biofuels, stimulate R&D, promote market acceptance and familiarity with the use and handling of biofuels. (This is a very important aspect and one should not underestimate the learning curve required for successful implementation), capability to harness is less discerning indigenous feedstocks, eg Waste lipid streams.
• Tourism growth by reinforcing the NZ "Clean & Green" image - in this respect several New Zealand tourism focussed companies are already leading the way (Air New Zealand for example). The potential to actively promote New Zealand as an eco-tourism destination (eg Great Barrier Island) is significant as interest in so-called eco-tourism is seen around the globe. New Zealand's 'clean - green' image is often overplayed. The use of sustainably produced New Zealand sourced biofuels would further enhance this reputation.

Current Status in the New Zealand Industry

The following articles summarise the situation in New Zealand at present with respect to liquid biofuels:

1. “Baa-baa black gold - In search of the BETTER OIL”, bright (the New Zealand Trade and Enterprise publication), (March/April 2007).
2. Ethanol, e.nz magazine, (January/February 2009).

 

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Who’s Who in NZ Biofuels

New Zealand has a fledgling biofuels industry with considerable potential.  Bioethanol and biodiesel are produced and available for wholesale purchase and blended bioethanol petrol is available for retail sales at two outlets.  The table below sets out some brief details of the leading players in the sector.  These companies are currently producing biodiesel or bioethanol.  Individuals or Organisations who are at the research / trial stage are listed under Biofuels Research in New Zealand.

 

Liquid Biofuels – key players – Fuel Producers and Wholesalers

• BioDiesel Oils (NZ). East Tāmaki, Auckland, biodiesel from tallow.
• Ecodiesel Ltd , South Auckland, biodiesel from tallow.
• Biodiesel New Zealand, Christchurch, used cooking oil and rapeseed oil grown as a rotational crop with other food crops.
• Anchor Ethanol -  Auckland, bioethanol from whey.
• NZ Ester Fuels - Pukekohe, Auckland, biodiesel from used cooking oil, tallow, and materials rich in free fatty acids (FFA).
• Flo-Dry Engineering -  Auckland, biodiesel from Tallow (via reactive distillation).
• Environfuels - Te Kuiti, Waikato, biodiesel from used vegetable oil (and expanding to utilise seed oil grown on marginal land).
• Kiwifuels - Rangiora, biodiesel from rapeseed oil (otherwise known as canola)
• Envirocar – Auckland, vehicle conversion system supported with biofuels (‘Environfuel’) from recycled and recovered cooking oil. Envirofuel is ready for use post modification of the vehicle. Envirofuel is only available to those who have purchased the Envirocar biofuel conversion system.

 

Liquid Biofuels – key players – Fuel Retailer

• Gull – North Island. Gull was the first to bring a biofuel to market in New Zealand with Gull Force 10. Also available is Gull Regular Plus. More details here.
• Mobil – Wellington Region Trial, Mobil sells ethanol-blended petrol E3 and E10 blends. More details here. E10 – contains up to 10% ethanol blended with Premium grade petrol. E3 – contains up to 3% ethanol blended with Regular grade petrol.

 

Liquid Biofuels – key players – Consultants

• Maunsell AECOM – Energy and Engineering advisory services.
• Waste Solutions – Consultancy in wastewater and innovative biotechnology solutions for producing energy and value added products from waste.

 

Liquid Biofuels – key players – Equipment Providers/Design Engineers

• Flo-Dry Engineering - Auckland, Engineers who design and build waste treatment plants for food processing industries to efficiently extract products from animal waste which is recoverable as tallow or nutritional stock feed, fertiliser or bone gelatine.

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Benefits of biodiesel and bioethanol

Biodiesel has a number of other advantages over ordinary diesel:

• Readily broken down by bacteria. Even small amounts of biodiesel mixed with diesel will speed up the breakdown of fuel spills.
• Much higher flash (ignition) point than mineral diesel, making it safer to transport.
• Lower emissions, reduced ozone forming potential, almost no sulphur, and reduced production of carcinogens.
• Better engine lubricating properties resulting in reduced engine noise.
• Growing crops for biodiesel production can mean that otherwise poorly positioned or infertile soils can become profitable for their owners. The crops can often improve the quality of the soil.  Environmental groups criticise the destruction of forests and land that would otherwise be used for growing edible crops to then grow biofuel crops and rightly so.  Growing biofuels does not have to be at the expense of food crops.  Sustainably produced biofuels offer a solution. This ‘food vs fuel’ debate has gathered momentum in the last few years.  It is important to buy biofuels from sustainable sources.  Much work is going on internationally to define the Sustainability Criteria for Biofuels.  See the LBIG view on ‘food vs fuel’ here.

Bioethanol has a number of advantages over petrol:

• The main advantage of bioethanol over petrol is its renewability and carbon neutrality. It is renewable energy source because it is produced from plants that are grown and harvested every year.
• Bioethanol is meant to be historically the fuel of choice with the fist internal combustion engine designed to run on ethanol. Their octane rating is 113 in comparison with the petrol ones whose octane rating is between 83 and 95. The higher the octane rating is the less “knocking” will be heard – pre-ignition of the fuel, which damages engines.
• Another advantage is the independence which bioethanol may give different countries. Currently reliant in imported carbon-based fuels.
• Growing crops for bioethanol production can mean that otherwise poorly positioned or infertile soils can become profitable for their owners. The crops can often improve the quality of the soil.  Environmental groups criticise the destruction of forests and land that would otherwise be used for growing edible crops to then grow biofuel crops and rightly so.  Growing biofuels does not have to be at the expense of food crops.  Sustainably produced biofuels offer a solution. This ‘food vs fuel’ debate has gathered momentum in the last few years.  It is important to buy biofuels from sustainable sources.  Much work is going on internationally to define the Sustainability Criteria for Biofuels.  See the LBIG view on ‘food vs fuel’ here.

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Biofuels Technical Terms

• Batch Processing - Since the 1940s, batch processing (one quantity of raw material at a time) has been used, with separation of biodiesel from glycerol being the final part of the process. The advantages of batch operation are given as cheap cost and flexibility to accommodate changes in raw materials quality and quantity. The disadvantages are difficulty in attaining consistency of product quality and safety.

• Cellulosic biomass - Cellulosic biomass is the fibrous, woody, and generally inedible portions of plants that make up 75 percent or more of all plant material. Bioethanol and biobutanol are produced from cellulosic biomass. Typically, cellulosic biomass is derived from readily available sources such as perennial grasses like switchgrass, plant wastes and even sawdust. Cellulosic biomass is cheap, it doesn't compete with food crops and estimates have put the level of production from cellulosic biomass as high as 2,000 gallons of renewable petroleum per acre . There are two ways of producing alcohol from cellulose : Cellulolysis processes which consist of hydrolysis on pretreated lignocellulosic materials, using enzymes to break complex cellulose into simple sugars such as glucose and followed by fermentation and distillation . Gasification that transforms the lignocellulosic raw material into gaseous carbon monoxide and hydrogen. These gases can be converted to ethanol by fermentation or chemical catalysis . They both include distillation as the final step to isolate the pure ethanol.

• Cetane number - Biodiesel from tallow has a higher cetane number than plant oil biodiesel. This means cleaner and more efficient burning in diesel engines.

• Chemical transesterification - Biodiesel can be produced from any non mineral oil or fat through transesterification, a reaction with alcohol and a catalyst. The products of the reaction are an ester (biodiesel) and glycerol. A variation of the transesterification reaction has been used for centuries to produce soap but modern biodiesel production plants use a very fast, high pressure and temperature continuous process.

• Cloud point -  Due to the high levels of saturates, biodiesel from tallow tends to crystallise out at much higher temperatures than biodiesel from plant oils. In Northern Europe this makes tallow biodiesel unsuitable for winter use apart from blending at low rates into conventional diesel. Tallow diesel cannot meet the required DIN standard for 100% biodiesel, but as a 5% mix with conventional diesel it meets the required standards. Cloud point defines the temperature at which a clear diesel fuel becomes hazy or cloudy due to the formation of wax crystals.

• Cold Filter Plugging Point (CFPP): An indicator of the temperature at which the precipitation of wax crystals in distillate fuel may lead to blocking or plugging of equipment filters and fuel lines.

• Cold-flow standards - Biodiesel specifications in New Zealand are controlled by a voluntary Standard NZS 7500:2005 Automotive Biodiesel - Specification for manufacturing and blending. While biodiesel is generally considered to be similar to mineral diesel there are some key differences which need to be considered as part of a diesel / biodiesel blend. These properties are density, viscosity and cold flow (cloud point and cold filter plugging point or CFPP). Biodiesel, particularly when made from tallow, is known to have poor cold flow properties. While cold flow properties are specified in the PPSR all oil companies in New Zealand choose to provide diesel with more stringent cold flow properties. See here for more details on cold flow.

• Continuous Flow - The advantages of continuous reactors include product consistency, safety, and more efficient design options for the reactor and ancillary processes such as glycerol separation. The key feature of the process is its ability to operate continuously with a high reaction rate, potentially requiring less post reaction cleaning and product/reactant separation than currently established processes.

• Denaturant : A substance added to ethanol to make it undrinkable, or unsuitable for human consumption, e.g. petrol.

• EN 14214 : Automotive fuels - Fatty acid methyl esters (FAME) for diesel engines – Requirements and test methods.

• Ethanol and Biodiesel Blends

E5 - E5 is an ethanol blend fuel which consists of 5% ethanol of 95% petol.

E10 - E10 is an ethanol blend fuel which consists of 10% ethanol and 90% petrol.

E85 - E85 is an 85% ethanol blend with 15% petrol. In March 2009 the Environmental Risk Management Authority (ERMA) approved an application from EECA to allow E85 with controls.

More details on the ERMA decision to approve the application can be found here.

E100 - Neat ethanol can be used as a fuel, although vehicles must be specifically designed for this purpose. Vehicles suitable for operating on neat ethanol are not currently available in the New Zealand market. It is therefore not considered necessary at this time to introduce a regulated specification for hydrous or anhydrous ethanol to be used as fuel in neat form (i.e. unblended).

B5 - B5 is a blend of 5% biodiesel and 95% mineral diesel. In March 2009 Mobil announced its plans to trial the sale of B5 in the Bay of Plenty - Questions and Answers here .

B20 - B20 is a blend of 20% biodiesel and 80% mineral diesel

B100 - B100 is 100% pure biodiesel.

 

• FAEE : Fatty acid ethyl ester, biodiesel produced by ethanol esterification of natural product fatty acids.

• FAME : Fatty acid methyl ester, biodiesel produced by methanol esterification of natural product fatty acids.

• Fermentation - Ethanol is currently produced from starch and sugar based products which are fermented to form a dilute alcohol. Various grades of industrial, beverage and fuel grade ethanol are then distilled from the initial dilute solution.

• Fuel Quality Monitoring Programme (FQMP) : Responsibility of the Measurement and Product Safety Service, a group within the Ministry of Economic Development. It routinely tests petrol and diesel samples from around the country to monitor that the fuel available to consumers complies with the regulations.

• FVI : Flexible Volatility Index is a function of VP and E70. It is an indicator of hot running performance, or the tendency for fuel to vaporise in the fuel lines when the engine is hot (known as vapour lock) and impede fuel flow.

• Gasification - Interest is currently growing in the use of biomass gasification products to produce Fischer-Tropsch liquids (FTLs).  These liquids may eventually be produced at similar prices to petroleum-based diesel.  FTL formulations tend to be cleaner burning than petroleum-based diesel.

• Glycerides: Esters formed from glycerol and fatty acids. Glycerol can be esterified with one, two or three fatty acids to form monoglycerides, diglycerides and triglycerides.

• Glycerol (or glycerine): An alcohol that is the main by-product of the transesterification process. Biodiesel may contain free glycerol and/or bound glycerol (i.e. contained in the mono-, di- and triglycerides).

• Hydrous ethanol: Neat ethanol that has a higher water content than "anhydrous" ethanol, and is therefore generally unsuitable for blending with petrol.

• Hydrolysis/Fermentation - Advances in the hydrolysis/fermentation of ligno-cellulose to produce ethanol/methanol and lignin are promising, with future cost reductions claimed.  The alcohol fuels can be used in present designs of internal combustion engines, new micro-turbines, or as a source of hydrogen for fuel cells.

• Minimum ester content  - Conventional processing methods require a much higher quality tallow in order to meet the Engine Fuels Specifications Regulations minimum ester content and cold-flow standards.

• NZS 7500: The New Zealand Standard on Automotive Biodiesel – Specification for Manufacturing and Blending.

• Polymerise: The chemical reaction in which a compound is made into a polymer, which is a natural or synthetic compound that consists of large molecules made of many chemically bonded smaller identical molecules.

• Pr EN 15376: Automotive fuels - Ethanol as a blending component for petrol.

• Pyrolysis - Pyrolysis processes provide greater flexibility and higher conversion efficiencies compared to combustion, but capital costs are also currently excessive and technology is in the early stages of development.  The product, pyrolysis oil, which can be used in turbines and other heat plant, can be easily transported and thus allows separation of the resource location from the site of use.

• Reactive Distillation - Reactive Distillation is a continuous process in which the chemical reactions and product separations occur simultaneously in the one unit.

• Rendering - Rendering is the boiling down of waste scraps of meat, fat, bone and other animal tissues at meat processing plants to produce meat meal and tallow.

• Saturated fatty acids: All carbons contain as many hydrogens as possible (hence a saturated fat is 'saturated' with hydrogen atoms). The fatty acids do not contain any double bonds or other functional groups along the chain.

• Tallow - Tallow is the fat fraction from the rendering process. It is produced in two main grades – edible grade for human consumption as cooking fat or in baked products, and inedible grade that is made into soap, candles and waxes. New Zealand rendering systems are generally advanced and well managed, and consequently NZ tallows command a premium on world markets. For a guide to buying tallow see the Information and Resources section on this website here .

• Tallow methyl esters manufacture - Biodiesel is formed when tallow (triglycerides) is heated in the presence of methanol and an alkaline catalyst to produce methyl esters (biodiesel) and glycerol.

• Unsaturated fatty acids: A fat or fatty acid in which there are one of more double bonds in the fatty acid chain (hence eliminating hydrogen atoms). A fat molecule is monosaturated if it contains one double bond and polyunsaturated if it contains more than one double bond. The greater the degree of unsaturation in a fatty acid (i.e. the more double bonds in the fatty acid), the more vulnerable it is to oxidative degradation.

• Vapour pressure (VP): This is a measure of the pressure exerted by the vapours delivered from a liquid at a given temperature and pressure.

 

Something missing here?  Contact us with your suggestions to make this list of technical terms more helpful.

 

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Sustainability Criteria for Biofuels

Good news - New Zealand biofuels are Sustainable biofuels!!

The growing international debate and requirement for 'sustainability standards' for biofuels can only be a good thing for New Zealand.

It is well known and proven that the existing resources available in New Zealand such as tallow, used cooking oil, rotational oil seed crops and whey are indeed sustainable and moreover, are amongst the best performers in terms of net green house gas emission reductions. Longer term other sustainable feedstocks such as cellulose and algae will be utilised as technological developments evolve.

There is significant potential here for New Zealand to position itself as a leading producer and user of sustainably produced fuels. New Zealand has the unique opportunity to develop a biofuel industry that utilises existing resources that are available on a sustainable basis. By this we mean biodiesel from either tallow (rendered from beef or mutton fat), used cooking oil and fats, vegetable oil from rotational crops, ethanol from whey, ethanol from cellulose, algae oil options, etc.

These resources have a very favourable net reduction in greenhouse gas emissions, they do not compete with food production nor do they threaten conservation areas. Rather they have the potential to reduce waste to landfill and give some value to otherwise low-value land. This is a 'win-win' situation.

It is likely that agreement of a definition of 'sustainable' can be agreed for New Zealand and while work is progressing on this it should not be allowed to restrict growth and investment in the industry. To some extent there would be an element of self regulation as it is highly unlikely that any one of the oil companies would knowingly import fuel derived from the destruction of rain forest. Their brand reputation would not tolerate this. New Zealand can only benefit from a sustainability mandate.

 

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Resources on Sustainability and Biofuels

International Articles / Papers

Resources on the debate around "sustainability and biofuels" are plenty - here is a brief selection:

• Environmental Sustainablility Criteria for Biofuels, Europa Bio - The European Organisation for Bioindustries - biofuels Fact Sheet.

• Biofuels sustainability in the European policy - presentation (January 2008).

• Wikipedia entry for Sustainable Biofuels and Sustainability standards for Biofuels (several useful reference here).

• Roundtable on Sustainable Biofuels (web-site) and (factsheet) and more here on the Worldwatch Institute web-site.

• International Standards Organisation - Technical Committee (TC) 28 / Subcommittee 7 for the standardisation in the field of liquid biofuels

• Making Certification Work for Sustainable Development: The Case of Biofuels United Nations Conference on Trade and Development (UNCTAD), October 2008. Investigates pros and cons of certifying biofuels on the basis of sustainability and what is required for a certification system to play a positive role for sustainable development without hindering international trade.

• 2008 White Paper on Internally Compatible Biofuels Standards: Request by the governments of the United States and Brazil and the EU. Produced by a joint task force after a six-month review process that considered thousands of pages of technical documents produced by ASTM International, the Brazilian Technical Standards Association (Associação Brasileira de Normas Técnicas or ABNT) and the Euopean Committee for Standardisation (CEN). Standards developed by these three SDOs are currently being used in support of biofuels commodities trading between nations.

• Biofuels Sustainability Criteria Relevant issues to the proposed Directive on the promotion of the use of energy from renewable sources - Study requested by the European Parliament's Committee on Environment, Public Health and Food Safety, Francis X. Johnson and Mikael Roman, June 2008.

UK Workshop - Biofuel Sustainability and Chains of Custody (Sept 2008).

• Biofuels: Environmental Consequences and Interactions with Changing Land Use - Proceedings of the Scientific Committee on Problems of the Environment (SCOPE) International Biofuels Project Rapid Assessment, 22-25 September 2008, Gummersbach, Germany. R.W. Howarth and S. Bringezu, editors. 2009. http://cip.cornell.edu/ http://www.transportenvironment.org/News/2009/4/75-scientists-call-for-end-to-biofuels-targets/biofuels/ - Table of Contents follows

•  Executive Summary.
Rapid assessment on biofuels and the environment: overview and key findings.
R. W. Howarth, S. Bringezu, M. Bekunda, C. de Fraiture, L. Maene, L.A. Martinelli, O.E. Sala.
I. Rapid Assessment Review Papers

•  Chapter 1.
Introduction: Biofuels and the Environment in the 21st Century
R.W. Howarth, S. Bringezu, L.A. Martinelli, R. Santoro, D. Messem, O.E. Sala

•  Chapter 2.
Government Policies and Drivers of World Biofuels, Sustainability Criteria, Certification Proposals and their Limitations
T.D. Searchinger

•  Chapter 3.
Biomass Conversion to Fuels and Electric Power
R.C. Brown and M. Wright

•  Chapter 4.
Crops for Biofuel: Current Status and Prospects for the Future
D.J. Connor and C.G. Hernandez

•  Chapter 5.
Energy Balance & Greenhouse Gas Emissions of Biofuels from a Life- Cycle Perspective.
E. Menichetti and M. Otto

•  Chapter 6.
Greenhouse Gas Implications of Land Use Change and Land Conversion to Biofuel Crops.
N.H. Ravindranath, R. Mauvie, J. Fargione, J.G. Canadell, G. Berndes, J. Woods, H. Watson, J. Sathaye

•  Chapter 7.
Biodiversity Consequences of Increased Biofuel Production.
O.E. Sala, D. Sax, H. Leslie

•  Chapter 8.
Biofuels and Water.
C. de Fraiture and G. Berndes

•  Chapter 9.
Impact of Ethanol Production on Nutrient Cycles and Water Quality: The United State and Brazil as Case Studies.
T.W. Simpson, L.A. Martinelli, A.N. Sharpley, R.W. Howarth

•  Chapter 10. ( forthcoming : chapter is in final stages of preparation. To receive notice of the posting of chapter 10, please contact Renee Santoro )
Air Quality Issues Associated with Biofuel Production and Use.
P. Hess, M. Johnston, B. Brown-Steiner, T. Holloway, J. B. de Andrade, P. Artaxo

•  Chapter 11.
Biofuels: Economic and Public Policy Considerations.
A.M. Bento

•  Chapter 12.
Social and Distributional Impacts of Biofuel Production.
L. Vanwey

•  Chapter 13.
Future Feedstocks for Biofuel Systems.
J. Woods, M. Black, R. Murphy
II. Deliberations from Gummersbach

•  Chapter 14.
Quantifying the Environmental Impacts of Biofuel Production: Knowns and Unknowns
S. Porder, A.M. Bento, A. Leip, L.A. Martinelli, J. Samseth, T.W. Simpson

•  Chapter 15.
Biofuels and Developing Countries
M. Bekunda, C.A. Palm, C. de Fraiture, P. Leadley, L. Maene, L.A. Martinelli, J. McNeely, M. Otto, N.H. Ravindranath, R.L. Victoria, H. Watson, J. Woods

•  Chapter 16.
What are the Final Land Limits
M.M.C. Bustamante, J. Melillo, D.J. Connor, H. Hardy, E. Lambin, H. Lotze-Campen, N.H. Ravindranath, T.D. Searchinger, J. Tschirley, H. Watson

Chapter 17.
Mitigation Strategies: Biofuel Development Considerations to Minimize Impacts on the Socio-Environmental System
D. Ojima, C. Field, P. Leadley, O.E. Sala, D. Messem, J. E. Petersen, J. Born, L. Vanwey, M. Wright

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What is New Zealand doing?

Standard New Zealand

ISO Sustainability Criteria for Biofuel - Standards New Zealand sought stakeholder views in late 2008 on whether the Internaional Organisation for Standardisation (ISO) should develop a new international Standard on 'Sustainability criteria for biofuels'. As a result of this consultation, New Zealand voted for the work to go ahead, and to participate in its development.

A ISO 'Sustainability criteria for biofuel' meeting will be held 8th and 9th June 2009 in Berlin, Germany. The Agenda for this meeting is here

EECA

EECA - has commissioned a project to look at Default values for GHG emissions in the New Zealand Biodiesel supply chains. In paricular the study looks at the following:

• Used cooking
• Tallow
• Rapeseed oil

Preliminary findings from the project can be found here. Final details are expected in late 2009.

Other EECA Resources include:

• EECA Presentation on Sustainability of NZ Biofuels (March 2009)

EECA Press Release on Sustainability of NZ Biofuels

• Additional reports on Biofuels Sustainability are on the EECA website here
• Tallow as a sustainable Feedstock for Biofuels - article by the NZ Renders Group of the Meat Industry Association

 

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Biofuel Legislation and Regulations

Brief history and current status of Liquid Biofuels in New Zealand

(current at 25 May 2009)

• 3 September 2008 - The Legislation to bring into force the Biofuel Sales Obligation, the Biofuel Bill, was passed through Parliament.

• 1 October 2008 - The Biofuel Sales Obligation commenced under the then Labour Government.

• 19 November 2008 - New National Government is formed. National Government indicates its intention to repeal the previous Government’s policies on biofuels.

• 11 December 2008 - Energy and Resources Minister Gerry Brownlee tabled in Parliament a Bill to repeal the obligation placed on oil companies to sell a certain proportion of biofuel. More here.

• 17 December 2008 - The Biofuel Sales Obligation and associated regulations were repealed.

• 17 December 2008 - Energy and Resources Minister Gerry Brownlee indicates the likely introduction of tax breaks on fuels coming from proven sustainable sources. More here.

• 19 May 2009 - The New Zealand Government announced the introduction of the Biodiesel Grant Scheme. Further details about the Scheme are available here.

Government Roles

The key Government Ministries involved in the regulation of liquid biofuels in New Zealand are:

• The Ministry of Economic Development (MED);
• The Energy Efficiency and Conservation Authority (EECA); and
• The Ministry of Transport (MoT).

Other Government Departments / Ministries with a minor role in biofuels are the Ministry of Consumer Affairs and Customs and Excise as outlined below.

Ministry of Economic Development (MED) – Biofuels are governed under MED who administer funds for commercialisation of biofuels, fuel standards, legislation, and standards for sustainability.  MED more here

Energy Efficiency and Conservation Authority – The Energy Efficiency and Conservation Authority (EECA) promotes sustainable energy by changing the way New Zealanders think about, and use energy. EECA works to raise community awareness of energy efficiency and renewable energy issues and provides businesses and individuals with the tools to make changes. EECA develops programmes to meet the needs of specific markets, often working in partnership with other organisations. As part of its Renewable Energy Programme EECA promotes activities on bioenergy generally and including biofuels in order to encourage uptake.  EECA produces a considerable range of information and resources relating to biofuels, their production and use.  Further details about EECA’s activities are available here.

Ministry of Transport (MoT) - The Ministry of Transport’s Environment group has principal responsibility to provide leadership in the management of the environmental and public health impacts of transport as part of the development of a sustainable transport system. MoT’s roles are limited to encouraging demand for biofuels in transport fleets, and with fuel or road tax issues to the extent that they affect biofuels.  The Ministry of Transport also present a number of useful consultancy reports, policy details and ‘Question’s and Answers’ on biofuels.  For further details about MoT’s activities in relation to biofuels and information available here.  Information on the policy decisions behind the Biofuels Sales Obligation can be found here.

Ministry of Consumer Affairs (MoCA) – The Ministry of Consumer Affairs test the quality of all transport fuels under the Fuel Quality Monitoring Scheme. (further details under Testing and Certification and Fuel Quality Specifications.

Customs and Excise – A license for the manufacture of biofuels must be granted by Custom’s and Excise (further details under Manufacturing Regulations).

 

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Key Regulations, Standards and Quality

Biodiesel	Bioethanol
Specification – yes Licence required to produce? - yes	Specification – yes Licence required to produce? - yes
Fuel Quality Specifications
Fuel Quality Specifications - Petrol, diesel, ethanol, biodiesel and biofuel blend quality in New Zealand is governed by a set of regulations designed to protect consumers and the environment.  These are the Engine Fuel Specifications Regulations 2008.  These regulations replaced the Petroleum Product Specifications Regulations 2002 on the 1st of July 2008.  See Testing and Certification for enforcement of the Regulations.  They are enforced by MED and the Ministry of Consumer Affairs.
10 - Biodiesel component of diesel/biodiesel blends sold by retail sale 16 - Requirements relating to biodiesel sold by non-retail sale	8 - Ethanol component of petrol/ethanol blends sold by retail sale 14 - Requirements relating to petrol/ethanol blends sold by non-retail sale
Manufacturing Regulations
Biodiesel Manufacture and Ethanol Manufacture – Licence required from Customs and Excise Biodiesel was included as a fuel in Schedule 3 of the Customs and Excise Act 1996 on 1 October 2008 and consequently areas where biodiesel is now manufactured are required to be licensed by Customs. Biodiesel is currently excise rated “Free” and is subject to the Petroleum and Engine Fuels Monitoring Levy (0.045 cents per litre). Ethanol used as a fuel is excise-free provided an application is made to the Chief Executive of Customs and approval granted by him. Otherwise, ethanol attracts a substantial excise charge per litre of alcohol due to its potential use as a drinkable spirit. The exemption to the requirements to be a Customs controlled area for personal use of ethanol only extends to drinkable spirits, not to the use of ethanol as fuel. Anyone making biodiesel or bioethanol must make an application to be granted a licence as a Customs controlled area. See the Customs website or call 0800 428 786 for more information. Safety Issues Some chemicals used to manufacture biodiesel are flammable and require the use of specialised electrical equipment to maintain safety in the presence of flammable materials. Most electrical equipment in biodiesel manufacturing plant will require installation and inspection by appropriately qualified electrical workers. Such electrical equipment should be accompanied by documentation confirming its safety and suitability for use in New Zealand, and include safety instructions for its operation and maintenance. It is critical that these instructions are followed. Likewise, naked flames must be avoided in the vicinity of biodiesel manufacturing plant. For further information on electrical or gas safety, contact the Energy Safety Service on 0508 377 4636. You can also visit the Energy Safety web page.

 

ASTM Standards - Blends (Biodiesel and bioethanol)

Bioethanol blend specifications

ASTM D 5798: Standard Specification for Fuel Ethanol (Ed75-Ed85) for Automotive Spark-Ignition Engines - This specification covers a fuel blend, nominally 75 to 85 volume % denatured fuel ethanol (Ed75-Ed85) and 25 to 15 additional volume % hydrocarbons for use in ground vehicles with automotive spark-ignition engines. Fuel ethanol (Ed75-Ed85) shall conform to the performance requirements prescribed. Fuel ethanol (Ed75-Ed85) shall be visually free of sediment and suspended matter. The hydrocarbon/aliphatic ether blend content, vapaour pressure, acidity, pH requirements, gum content, inorganic choloride, water requirements, copper requirements, and sulphur requirements shall be tested to meet the requirements prescribed.

ASTM D 4806: Standard Specification for Denatured Fuel Ethanol for Blending with Gasolines for Use as Automotive Spark-Ignition Engine Fuel - This specification covers nominally anhydrous denatured fuel ethanol intended for blending with unleaded or leaded gasolines for use as a spark-ignition automotive engine fuel. Denatured fuel ethanol shall conform to the specified performance requirements for the following: ethanol content, methanol, solvent-washed gum, water content, denaturant content, inorganic chloride content, copper content, acidity, pHe, sulfur ccontent, sulfate content, appearance, and specific gravity. The only denaturants used for fuel ethanol shall be natural gasoline, gasoline compoents, or unleaded gasoline at the minimum concentration prescribed. Prohibited denaturants include methanol which does not meet the specified requirement, pyrroles, turpentine, ketones, and tars (high-molecular weight pyrolysis products or nonfossil vegetable matter). Sampling, containers and sample handling techniques, and the test methods for determining conformance to the specified requirements are given.

Biodiesel blend specifications (ASTM October 2008)

ASTM D6751-08: Revised to include the requirement of a cold soak filterability test that controls minor compounds and provides a more accurate reading of how the fuel will perform in cold weather conditions.

ASTM D975-08a: Specification for Diesel Fuel Oils (on- and off-road applications) - revised to allow for upto 5% biodiesel content. This allows B5 blends to be treated the same as conventional diesel for testing purposes. Now listed as ASTM D975-09.

ASTM D396-08b: Specification for Fuel Oils (home heating and boiler applications) - revised to allow for upto 5% biodiesel content. Like D975, this revision allows B5 blends to be treated the same as conventional fuel oil for testing purposes. Now listed as ASTM D396-09.

ASTM D7467-09: Specification for Diesel Fuel Oil, Biodiesel Blend (B6 to B20) - a newly created Standard governing the properties of blends containing between 6 and 20% biodiesel for on- and off-road applications.

 

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Biofuels - Issues of Concern

1. Sustainability and the Food vs Fuel debate
2. EECA report on sugar cane sustainability
3. EECA report on rising food prices and biofuels
4. Quality biofuels
5. Toxic Jatropha? -  Putting it into Perspective
6. Canola Oil / Rapeseed Oil – The facts

 

EECA Report: Sustainability and the Food vs Fuel debate, February 2008

Click here to view the report on Consumer Information and Biofuel Sustainability.

EECA Report : The Sustainability of Brazilian Sugarcane Bioethanol - A Literature Review, May 2008

The Energy Efficiency and Conservation Authority (EECA) sought an independent international literature review into the sustainability of Brazilian sugarcane biofuel pending the introduction of legislation requiring oil companies to sell a percentage of biofuel in order to reduce New Zealand's carbon footprint. The literature review confirmed that Brazilian sugarcane biofuel is environmentally sustainable. Click here for further details and a link to the report on EECA's website.

EECA Report : Rising Food Prices and Biofuels, September 2008

The Energy Efficiency and Conservation Authority (EECA) together with Ministry of Agriculture and Forestry (MAF) Policy sought an international review of literature to better understand the causes of rising food prices and their linkage (if any) to biofuels production. This review aims to inform the New Zealand debate on the impact of first generation biofuels on food prices. Click here for further details and a link to the report on EECA's website.

Quality biofuels

Whilst it might seem like a good idea, trying to make your own biodiesel or even running your car on vegetable oil is not a good idea.  EECA reports that overseas studies and local experience show there is a risk of damage to your engine when using straight vegetable oil, including when the engine has been modified with a conversion kit. Fuel quality is a key issue and EECA recommends only buying from sellers who are able to demonstrate that they are complaint with the Engine Fuel Specifications Regulations 2008.

 

Toxic Jatropha? Putting it into perspective

Media reports have recently suggested that Jatropha poses a serious threat to livestock [Carbon News Farmers fear fuel-source jatropha will kill stock - Tuesday 27 Jan 09 9:00am - Plans to grow the biofuel stock plant jatropha in New Zealand could run into opposition from farmers who fear it could kill their animals and become another “gorse” and JATROPHA: Toxic seeds could fool children - Friday 30 Jan 09 9:00am - The toxic seed of the jatropha plant – used to make biofuel - might be attractive to children, warns a New Zealand scientist.”

LBIG Convener Andre Hamman notes “Jatropha is indeed poisonous but to imply that this could cause a significant safety issues is a matter of assessing the risk by considering aspects of incidence, probability and severity.  A comparable plant would be Ricinus communis which is grown to produce commonly consumed "castor oil". The plant is treachous in that even touching the leaves during harvesting can cause human ill health. The cold pressing and filtering process removes the toxin Ricin. According to the NZ Biosecurity website this species may be freely imported into NZ. I myself have seen this plant growing in many places in gardens and roadsides within the Bay of Plenty and Auckland/Waikato areas.”

Of interest, the following common plants in NZ have the following toxicity/risk rating:

1. + Arum lilies, Macrocarpa, Oak, Potatoes (all green parts), Rhubarb (leaves)
2. ++ Ivy, Karaka tree, Kowhai, Pororporo, Ngaio, Lantana, Lillies, Daffodils, Castor oil Plant
3. +++ Tutu, Hemlock, Foxglove
4. ++++ Laburnum, Deadly Nightshade
5. +++++ Oleander, Yew, Rhododendron Azalea

Andre went on to note,”Whilst I am not qualified to offer an assessment of the toxicity/risk profile for Jatropha, I do recall comparisons made internationally between Jatropha and the Castor Oil plant.  Generally on the international circuit, the view is that Jatropha presents a lower risk. On this basis Jatropha would have a risk rating of ++ or +.

With regards to media comment that Jatropha may kill stock I can only imagine that this would be the result of ‘force feeding’ the animals.  Jatropha curcas has been used for centuries in Africa as a stock barricade. In my own experience, I have grown my Jatropha plants in a paddock with sheep. They simply leave the plants alone.”

Canola Oil / Rape Seed Oil – The facts

The internet is awash with information both good and bad in relation to Canola Oil.  This site explains most issues http://www.canola-council.org/biodiesel/.

 

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Testing and Certification

Ensuring a quality product should be the aim of any biofuels manufacturer.  The product needs to be tested and confirmation established that it meets the standards.

The fuel quality regulations (Engine Fuel Specifications Regulations 2008) are enforced by MED/Ministry of Consumer Affairs who carry out random spot sample checks of biofuels and mineral fuels sold to ensure that they meet the specs and have the power to prosecute if they do not.

Further details are available from the Ministry of Consumer Affairs - Fuel Quality Monitoring

EN Test Method 14103 - The test method for esters in biodiesel (EN 14103) has recently been amended. The need to allow an amendment of EN 14103 is to account for the presence of naturally occuring C-17 methyl ester, which is used as an internal standard. It has been acknowledged internationally that the ester content can appear low in the test as a result of C17 interference. The method was revised as of 7 July 2007. Further details here from the Ministry of Consumer Affairs web-site. The BANZ submission to the consultation process can be found here.

Fuel Quality Testing labs in New Zealand

• Biofuel Testing New Zealand - Biofuel Testing New Zealand is part of Independent Petroleum Laboratory Limited (IPL).  IPL is a fully independent joint venture company specialising in the testing and analysis of fuels, biofuels and environmental samples.  Contact here

If you carry out biofuel quality testing and would like to have your details listed here please contact us.

 

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Government Assistance for Liquid Biofuels Market Growth

 

Grant Funding

On 19th May the New Zealand Government announced the introduction of the Biodiesel GRANTS Scheme

Further details about the Scheme are available here with further details set out in the Biodiesel Grants Scheme Description Document here

The Biodiesel Grants Scheme - the Producer Application Form is now available on the EECA website through this link

Research Funding

There are two key sources of funds available specifically to promote the development of biofuels in New Zealand

 

Foundation for Research, Science & Technology (FRST):

• The Low Carbon Energy Technologies Fund seeks to assist public and private organisations who hve completed basic research and have demonstrated the potential of a new technology at proof of concept stage, to move through the pilot/demonstration plant stage.

 

New Zealand Trade and Enterprise (NZTE):

• Enterprise Development Grants
• Australia New Zealand Biotechnology Partnership (ANZBPF)
• General (non-financial) support for business development

 

 

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Who’s using Biofuels in New Zealand?

1. “Fueling up on recycled cooking oil”, NZ Tourism Company Fuels Fleet on Bio-diesel
2. “Fish 'n' chip oil fuelling tourist bus”, Stray, a "hop-on-hop-off" bus network aimed at the backpacker market fuels its bus on used cooking oils
3. Air New Zealand – Jatropha Oil test flight hailed as a success
4. Environment Canterbury biofuel Metrobus Trials (with Bio Diesel Oils Limited)
5. Christchurch urban bus and coach tour company Leopard Coachlines has changed over to a biodiesel blend for its entire fleet of 100 vehicles (with Bio Diesel Oils Limited)
6. Tourism company operates vehicles on 100% Waste Vegetable Oil
7. Rotorua Duck Tours specialises in introducing Rotorua's rich history and viewing some of its spectacular scenery. Rotorua Duck Tours offer amphibious sightseeing tours that are like no other, all powered by Environ Fuels
8. A Kaikoura backpackers has slashed a massive 92% off the cost of its hot water bill by re-using cooking oil from local takeaways and restaurants to fire its boiler
9. Bio diesel first for New Zealand championship - NZ Rally - Leading the way for competition using environmentally friendly energy, Rangiora's Matt Summer has the honour of starting this weekend's opening round of the Vantage New Zealand Rally Championship as the first team to use bio diesel as a fuel. Biodiesel is supplied by Rangiora based company - Kiwifuels. More details here.
10. Biofuel-powered around-the-world record-holder visiting southern ports - both Biodiesel New Zealand and Ecodiesel have been supplying fuel for the southern leg of port calls by Earthrace, the biodiesel powerboat which made a record-setting global circumnavigation in 2008. More details here and further details here.

 

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Biofuels Research/Development stage in New Zealand

New Zealand companies involved in research in the liquid biofuels area are listed below:

Who	What	Where and What we know
Solray Solray = Solvent Rescue Contact: Chris Bathurst and BL Rayners Ltd Contact: Wayne Harpur Christchurch	Algae - 'turning sewage algae intro crude oil. Process is now operational but commercial testing unlikely until April 2009.	Website : Solvent Rescue Articles: OilGae Blog - Jan 09 OilGae Blog - Jan 07 Southland Times Article
NIWA (National Institute for Water and Atmospheric Research) Contact: Rupert Craggs	more here	more here
Aquaflow Bionomic Corporation Contact: Nick Gerritsen, Marlborough	Algae - biofuel from wild algae harvested from open-air environments; currently building a pilot plant capable of producing 1 million litres annually.	Website: Aquaflowgroup.com Email: aquaflowgroup
Cawthron Institute Contact: Mike Packer, Nelson	Algae - study of the prospects for land-based aquaculture in New Zealand. Basic research on the utilisation of micro-algae as an energy source	Website: Cawthorn Institute
Scion Contact: Elspeth MacRae, Rotorua	Pulp and paper - Scion and AgResearch have partnered with San Diego-based Diversa on a feasibility study to determine whether or not a pulp and paper mill can be converted to turn its waste into biofuel.	Website: SCION Articles: NZTE NZFOA
BioJoule (now part of Vertichem formerly Pure Power Global) Contact: Jim Watson, Taupo	Salix - BioJoule was launched in 2006 with a commitment to energy farming and a three-pronged business approach for using the woody crop salix. When the shrub is harvested, says founder Jim Watson, it can provide cellulose for the production of transport ethanol; lignin for a plastic substitute; and xylose as a sweetener with non-diabetic properties.	NZTE Genesis
Alternative Energy Solutions Ltd (AES) Contact: Gavin Hedley, Pukekohe, Auckland	Biomas Liquefaction via pyrolysis - Pyrolysis of wood waste (hogged forest residue) to produce bio-oil. Significant advantage of mobile in-forest operation as bio-oil is a liquid fuel with about double the energy density of a hog fuel.	Plant under construction in Auckland. BANZ and Massey Energy Research workshop - 12 March 2008
Lanzatech Contact: Dr Sean Simpson, Auckland	CO and Waste gases - Lanzatech has developed a technology to allow high volume industrial waste streams to become a resource for bio-ethanol production. This technology has been developed and demonstrated in their purpose built laboratory. The company is now embarking on a process refinement and scale-up plan. The process uses microbes to convert CO and other industrial gases into ethanol.	Articles: NZ Herald Dominion Post Chemical & Engineering News
New Zealand Centre for Ecological Economics (NZCEE) Contact: Vickie Forgie	Bioenergy Options for New Zealand Project - including a focus on the use of canola for biodiesel	Website: NZCEE

 

If your details are not in this table and you would like them to be – contact us

 

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Useful Resources

New Zealand focused articles

1. Air New Zealand commits to biofuels, Biofuel Review (June 08)
2. “Baa-baa black gold - In search of the BETTER OIL”, bright (the New Zealand Trade and Enterprise publication), (March/April 2007).
3. Labour’s biofuels ‘dog’ has had its day, Independent Financial Review, Jenni McManus, (November 2008).
4. Ethanol, e.nz magazine, (January/February 2009).
5. Pure Power launches salix cultivation in New Zealand as cellulosic ethanol feedstock
6. Kiwi company pushes Salix as biofuel crop
   

 

New Zealand Reports/Useful Research Papers/Policy Papers/Presentations

1. Energy Farming with Willow in New Zealand, Kevin Snowden, Ian McIvor, Ian Nicholas.
2. Mandatory transport biofuels - Costs and benefits of mandatory biofuel blends in transport fuels, NZIER, Report to Ministry of Economic Development, 22 November 2004.
3. Encouraging uptake of transport biofuels, Assessment of policy alternatives, NZIER, Report to the Energy Efficiency and Conservation Authority, May 2005.
4. Biofuels Distribution Options, Prepared for Ministry of Transport, Hale and Twomey, March 2006.
5. Biofuels Sales Obligation, A Discussion Paper on Proposed Policy, September 2006.
6. The Manufacturer of Ethanol from Whey, Anchor Ethanol Plant at Tirau.
7. FIDA Engineering Solutions: Remote Bio energy Report - Bio-oil Option, Alternative Energy Solutions, Sept 2007.
8. Energy (Fuels, Levies, and References) Biofuel Obligation Repeal Bill, 28 November 2008.
9. Estimate of the Energy Potential for Fuel Ethanol from Putrescible Waste in New Zealand, Waste Solutions Ltd, June 2005.
10. The feasibility of a wood to ethanol plant using a thermo-chemical process, Report for EECA (public release version), Lanzatech - August 2008.
11. Consumer Information on Biofuel Sustainability, Options For Informing Consumers On Biofuel Sustainabilty, SKM Report for EECA, February 2008.
12. Presentation to Eco Matters Trust, Andre Hamman, BioDiesel Discussion, 20th May 2009 (Click here to link to NZ Ester Fuels Ltd website)
13. New - Feasibility of a wood to ethanol plant using a thermo-chemical process, click here for link to bkc website
14. New - MxG for Sustainable Renewable Energy, The Crop You Probably Know Nothing About, Peter Brown PFS Consultants, Aug 2009
    

 

Other Sources in New Zealand

Other sources of New Zealand focused reports can be found through the following links:

• The Ministry of Economic Development (MED)
• The Energy Efficiency and Conservation Authority (EECA)
• The Ministry of Transport (MoT)
• Bioenergy Knowledge Centre (BKC)
• New Zealand Parliament web-site (search word ‘biofuels’ – results here including Minister’s speeches, debates, written questions and Bills.

Case Studies

EECA has several Case Studies on its website - more details here

More Case Studies coming soon

International articles/studies

1. A Buyer's Guide to Rendered Fats, Render Magazine, February 2009
2. Bioethanol - an alternative fuel (Liontamer Protected Investments)
3. How Canada ranks: A comparative study of national biofuels policies world-wide, March 2006.
4. The Biodiesel Station, Sydney, Australia.
5. Biofuels in Australia –issues and Prospects, CSIRO, May 2007.
6. Life Cycle Assessment – study of Biodiesel from Tallow and Used Vegetable Oil, Anneliese Niederl and Michael Narodoslawsky, Graz, December 2004. 
7. International Conference on Biofuels, Biofuels as a driving force of Sustainable Development, Sao Paulo, Brazil: Trip Report, Scion, Michael Jack, November 2008.
8. Research: “Australia biodiesel market has potential”, Frost and Sullivan Research Report, February 2009.
9. IPIECA/ISEE/GBC Workshop: Biofuel sustainability and Chains of Custody, September 2008. 
10. The Gallagher Review of the Indirect Effects of Biofuels, UK Review Report, July 2008.
11. Production of biodiesel from jatropha curcas oil by using pilot biodiesel plant, D.RAMESH*, A.SAMAPATHRAJAN, P.VENKATACHALAM, India.
12. Biodiesel Initiatives in Germany, Institute for Energy and Environmental Research, May 2005.
13. IEA Report From 1st to 2nd Generation Biofuel Technologies - An overview of current industry and RD&D activities (extended Executive Summary), November 2008.
14. US National Biofuels Action Plan, Biomass Research and Development Board, September 2008.
15. Biofuels in the European Context: Facts and Uncertainties, 2008.
16. Plugging into the bright Future of Biofuels (Pulp and Paper International (PPI), Oct 2009.

 

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International web-based newsletters

ETHANOL PRODUCER MAGAZINE
The World of Ethanol at your fingertips - www.ethanolproducer.com/

BIODIESEL MAGAZINE
The World of Biodiesel at your fingertips - www.biodieselmagazine.com/

BIOFUEL CITIES UPDATE
Information on developments in the field and from the Biofuel Cities European Partnership, the multi-stakeholder forum for the application of biofuels - www.iclei-europe.org/index.php?id=7113

 

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