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Media Release

Biodiesel New Zealand pleased with farmer response to oilseed rape trial

1 October 2007

Biodiesel New Zealand's first oilseed rape crops have been planted in the South Island and the renewable fuel producer is pleased with the interest farmers have shown in the company's plan to test the energy crop's viability.

Biodiesel New Zealand's General Manager, Paul Quinn, says the first seed was planted on 19 September and the company has contracts with farmers for areas ranging from 8ha to 75ha. He says while there has been strong interest from the arable sector and a number of farmers agreed to take part in the trial, others told the company they had already made decisions about their spring rotations but are interested in contracts for autumn-sown oilseed rape.

"We've got a good geographical spread for the spring trial, with seed now planted or about to be sown on cropping farms in Southland, lower South Canterbury, upper North Canterbury, the Mackenzie Country and the Hawea Flat districts," Mr Quinn says.

"We imported enough seed for 1,500ha and knew that was pretty optimistic, considering most arable farmers make their decisions earlier in the year," Mr Quinn says. "What we're getting planted will enable us to learn more about growing conditions in these target areas, how our agronomy support can add value and it'll be more than enough to allow us to assess the spring seed's properties, its handling, storage and processing.

Mr Quinn says there has also been strong local interest in the cake by-product, which overseas is well regarded by stock-food manufacturers.

Background notes

• Biodiesel New Zealand Ltd is a subsidiary of Solid Energy New Zealand Ltd. Biodiesel New Zealand currently manufactures around 1 million litres of biodiesel a year at a plant in Addington, Christchurch by converting used cooking oil collected from restaurants and other food processing businesses around New Zealand.
  
• The Government has mandated that biofuels will form an increasing percentage of transport fuels from 1 April 2008, with a target rising to 3.4% of all fuel sold by (oil companies) by 2012. (The sales obligation requires 3.4 per cent of the total fuel sold by oil companies to be biofuel by 2012). Biodiesel New Zealand plans to increase production to 70 million litres per annum, or around 2% of the country';s total diesel use and more than half of the Government’s target for biofuels in 2012.