Processors, executives fined for exporting adulterated tallow
A group of meat processing companies, directors and managers have been fined a total of $1.6 million for deliberately and illegally altering exported tallow for profit.
It will produce up to 20 million litres of low-carbon bio-diesel annually for blending with traditionally refined product.
Chief executive of the NZX-listed transport fuels supplier, Mike Bennetts says the "economics around bio-fuels remain very challenging and we have worked this project non-stop for four years to get to this point", allowing the bio-fuel product to be offered at "a similar price to mineral diesel."
Z will also offer a 20% blend for commercial customers, with half current production volume already contracted to a small number of commercial users, and a 5% blend will be for sale to motorists off Z petrol station forecourts in the upper North Island.
The bio-fuel's properties will meet European and US standards, and have no impact on engine performance.
If demand is sufficient, the plant at the Wiri tank farm site south of Auckland could be doubled in size for $2.5 million additional capital expenditure. At this stage, the 20 million litres of production is a tiny proportion of Z's total annual diesel sales of up to 1.4 billion litres, although a 5% blend would stretch through some 400,000 litres of product.
The tallow-based feedstock is described as a "first generation" bio-fuel operation and would be the first in New Zealand to operate without requiring a government subsidy. Z is also investigating a second generation project involving wood waste with Norske Skog under the government's Primary Growth Partnership research scheme.
