Solid Energy's biofuel firm sold to managers

Solid Energy’s biofuel company, Biodiesel New Zealand, has been sold to its management for an undisclosed amount. The partners are Solid Energy’s former fuel business manager Martin Johnson and former production manager Karl Hatton, along with long-time customer Stark Bros. and a silent partner.
The Middleton-based business has been renamed Green Fuels while its diesel brand, Biogold, retains its name.
The biofuel refinery converts used cooking oil into environmentally friendly biodiesel.
It will be run by Johnson and Hatton. When it was state-owned, Solid Energy typically had six people based at its Christchurch refinery.
Johnson, Green Fuels managing director, said the company’s overhead had dropped significantly compared to Solid Energy’s. Green Fuels will make small deliveries itself and contract out delivery of larger volumes, as compared to before when the company had its own dedicated drivers.
Production had dropped to about 600,000 liters a year, but Johnson hopes to increase production to 1 million liters annually.
Johnson was confident the business would be profitable and competitive with petroleum-based diesel fuel.
“Both Karl and I are passionate about making and supplying environmentally friendly fuels and when the opportunity came to purchase the business, both of us jumped for it.”
Stark Bros. Managing Director Andrew Stark said he had looked hard at the business plan put forth by Johnson and found it compelling.
“It’s made locally in Christchurch, it would otherwise be a waste product. It’s the whole story that goes with it. It’s New Zealand at its best.” (February 15, 2013)