There's not a lot to report for March. Everything is going well trial wise and we are undertaking some work at the moment about future contract composition and consideration will be given to how biodiesel is included. The tallow price has now reached a new record level and $1200 at current pricing will buy you a tonne. This is up from $700 at the beginning of the trial. Diesel prices have also hit an all new high so the cost of running our network is increasing by the day. In the current environment it will be very difficult for us to justify paying any sort of premium to use a biodiesel blend in our PT fleet. The landscape has definitely shifted a lot since the trial began.

For further information in relation to biodiesel or the biodiesel trial please contact:

David Stenhouse
Ph 366 88 55
Email david.stenhouse@ecan.govt.nz

The trial to date is still proceeding well. The governments Sales Obligation start date has been deferred until July 2008 and this would have to be a very wise decision. Globally there continues to be huge issues surrounding the source of feedstock for biofuels. The government needs to introduce some real tangible sustainability requirements into it's Sales Obligation. Without them it is going to be open slather and NZ's clean green image will be tarnished.. There is major concern mounting worldwide that rainforests continue to be decimated. Food prices are also increasing to a huge extent because farmers can derive greater revenue from biofuel crops than they can from traditional food crops. It is a serious issue and needs to be treated as such.. It has been suggested that the government will follow european sustainability guidelines due to be introduced around 2010 but this will be too late. The government may even be wise to consider regulating the supply of tallow to allow NZ unfettered access to our own byproduct. Tallow is a sustainable feedstock and could supply the large part of NZ's biodiesel needs as required by the Sales Obligation. The question could and should be asked; if we have a sustainable feedstock readily available here why are we allowing it to be exported in large quantities to China to make soap? Especially if the end result of this export is that we then have to import feedstock or biodiesel from unsustainable sources.

For further information in relation to biodiesel or the biodiesel trial please contact:

David Stenhouse
Ph 366 88 55
Email david.stenhouse@ecan.govt.nz

Everything went smoothly over the Christmas period. A link to the Biodiesel Trial Report for the first 12 months of the trial is included. This includes information in relation to testing etc as well as other background information. Included in the document is a carbon mitigation study which indicates the cost of making the Christchurch public transport system carbon neutral.

Download a copy of the Biodiesel Trial Report here:

Full Version 5MB

Or, you may download the document in sections:

Main Document 145kb

Appendix 3MB

For further information in relation to biodiesel or the biodiesel trial, please contact:

David Stenhouse
Ph 366 88 55
Email david.stenhouse@ecan.govt.nz

Buses continue to circulate around Christchurch on various levels of biodiesel blend. Christchurch Bus Services has been in negotiation with their fuel supplier with a view to undertaking a trial with their entire fleet of buses. This is likely to proceed at some point early in the new year. Indications at present are that the fuel for this part of the trial will be imported from Australia. Environment Canterbury has been in discussion with the fuel supplier about the sustainability of the source of the feedstock for this biodiesel. One big advantage of the Christchurch Bus Services trial will be the blending of the biodiesel off site at the fuel storage area at Woolston. This offers huge benefits to us and if all fuel companies do the same our bus operators will no longer have to be concerned about the logistical part of the equation. It's promising to see that fuel companies are at least looking to provide facilities down here in Christchurch ahead of the governments sales obligation.

For further information in relation to biodiesel or the biodiesel trial please contact:

David Stenhouse
Ph 366 88 55
Email david.stenhouse@ecan.govt.nz

Warmer weather is upon us and the first year of the trial is now over. There has been a lot of learning over this first year, and considerable success. Discussions have now begun as to where the trial may take us in terms of the overall application of biofuels within our PT network. There are clear advantages in proceeding along a path where our entire PT fleet is operated on a biodiesel blend but there are also some significant risks in terms of ensuring the sustainability of feedstock supply. These risks are what we will continue to work toward addressing over the next few months. A major contract round is upon us in June 09 and we hope to have a strategic biofuels direction in place for our PT network prior to this.

For further information in relation to biodiesel or the biodiesel trial please contact:

David Stenhouse
Ph 366 88 55
Email david.stenhouse@ecan.govt.nz