Argent Energy New Zealand is investigating the feasibility of setting up New Zealand's first multi-feedstock biodiesel production plant.

New Zealand has emerged as a prime candidate for Argent Energy’s first plant outside the UK as a result of two fundamental synergies:

• the New Zealand government is actively pursuing a strategy to encourage the local use of biodiesel
• the country has a plentiful supply of tallow, the ideal feedstock for Argent’s biodiesel manufacturing process.

The New Zealand government has announced that it is to introduce a biofuel sales obligation on 1st July 2008 and that 3.4 per cent of fuel sold is to be biofuel by 2012. This is driven partly by the government's response to climate change and partly by the need to reduce reliance on imported fuel.  Argent Energy NZ’s managing director Dickon Posnett says the move is important if biofuels are to be taken seriously as a means of helping provide NZ with a secure fuel supply, reduce carbon emissions and encourage private investment in the sector. Submissions on the Biofuel Bill which implements the Biofuels Sales Obligation are being heard by the News Zealand Parliament's Local Government and Environment Select Committee. Argent Energy's submission can be seen here.

The technology would be likely to be provided by our technology partners BDI and would be capable of ensuring that the New Zealand biodiesel standards are consistently met. Discussions with oil companies to supply biodiesel have so far led to letters of intent with Chevron (Caltex), Shell and Mobil NZ.

Tallow would be the plant’s principal feedstock. Tallow production across both North and South Islands is up to 150,000 tonnes per year. Most of it is currently exported to Asia with the remainder being used for local industry. The quality of the tallow varies, as it does all over the world, but the quality of the finished product cannot afford to be anything but excellent so that customers and the end users may have absolute faith in it. Argent Energy New Zealand would be committed to achieving that quality.