Solid Energy to purchase biodiesel producer
State-owned Solid Energy, New Zealands largest coal mining company, is buying one of the countrys largest producers of biodiesel, Christchurch’s Canterbury Biodiesel. The purchase amount was undisclosed. Entering the biofuels sector “is a logical, but significant step from our already established market position in bioenergy with our wood pellet business, Nature’s Flame,” said Solid Energy CEO Don Elder. “We identified some time ago that we wanted to build a diversified portfolio of energy businesses alongside our existing coal mining operations,” he said. Canterbury Biodiesel, which will now operate as Biodiesel New Zealand, currently produces about 1 million liters per year of biodiesel at its plant in Addington, Christchurch, by converting used cooking oil collected from restaurants and other food processing businesses in the South Island. The company also has expanded used oil collection into the North Island. Canterbury Biodiesel’s owner Paul Quinn will become the general manager of Solid Energy’s biodiesel operation. Biodiesel New Zealand currently sells to fleet operators, including bus, trucking and earthmoving companies, which use very high-ratio blends of 60-100% biodiesel. Solid Energy hopes to boost the company’s biodiesel production from one million liters a year now to 70 million liters in three years at a cost of NZ$20 million (US$14.7 million). The target production level represents around 2% of New Zealand’s total diesel fuel consumption. (May 10, 2007)
