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With diesel prices moving up, locally produced biofuels are getting another look-in, and not just for environmental reasons. BY ALAN TITCHALL. The drive to encourage mixing biofuels into the nation’s fuel consumption took a hit when the previous government’s planned ‘Biofuels Sales Obligation’ was knocked on the head by the incoming National Government. However, the Government came up with a subsidy scheme whereby the Crown (through a legal agreement with ECCA) will provide a grant of up to 42.5 cents per litre for Kiwi biodiesel producers whose product sales amount to, or are in excess of, 10,000 litres per month and is used in fuel blends no higher than B20 (20 percent biodiesel). Biofuel comes in two forms – ethanol for petrol engines, which is made from starchy materials such as plants or diary processing waste, and biodiesel for diesel engines made from vegetable oils or animal fats. The only ethanol produced in New Zealand for fuel is supplied by Anchor Ethanol, a Fonterra subsidiary. Distilleries at Reporoa, Edgecumbe and Tirau, produce five million litres of different grades of ethanol a year from fermenting the lactose in whey, a waste product from cheese and casein manufacturing. Most of this ethanol is sold for a diverse array of products, from potable spirits to cosmetics and wine vinegar. A comparatively small amount is sold to Gull for use in its high-octane petrol (Force 10). The biofuel production focus in New Zealand is on biodiesel for economic reasons, as chemically altering plant oils and tallow to make diesel takes less energy than distilling plant material into ethanol. And unlike ethanol, which absorbs water and has to be transported separately as a fuel and blended close to the pump, biodiesel can be blended further up the supply chain and treated much the same as mineral diesel. The Kiwi producersBiodiesel production in New Zealand is mostly based on waste vegetable oil collected from the food industry and from tallow from the meat processing industry. Companies include Biodiesel New Zealand, a Christchurch-based company owned by Solid Energy that produces biodiesel from waste vegetable oil and from oilseed rape-canola grown by farmers in the South Island under contract.
Environ Fuels, based in Te Kuiti, is both a biodiesel producer and user. A subsidiary of contractors and quarry operators Holden Brothers, Environ Fuels was originally set up to supply cheap biodiesel fuel for the company’s transport and equipment fleet, which uses about 160,000 litres of mineral diesel a year. Environ Fuels currently produces about 300,000 litres of hi-quality, B100 biodiesel from waste vegetable oil. Managing director Warren Holden says its B100 is used by tourism operators in the region, transport companies, and over 40,000 litres is supplied to Meridian for use on Stewart Island in electricity generation. Holden says his own heavy contracting machinery, some of which is used in a local quarry, runs so much better on B100. “Our D7 bulldozer went through chewing through 34 litres an hour of mineral diesel to 30 litres of B100 an hour, doing the same work, and burning cleaner,” he comments.
As a renewable fuel, biodiesel appealed to the eco-friendly ideals of Tony (pictured right) and Vanessa Milhan, who set the company up in 2005. Their fleet of seven large trucks deliver nationwide using GPS-tracking leading edge E-Road monitoring systems. “A couple of years ago the price of fuel was going through the roof and was really volatile, so we started looking at alternatives,” says Tony. Around this time the Milhan’s were approached by Environ Fuels, suggesting they give their biodiesel a try. Two trucks were trialled for six months on canola-based biodiesel – one on a biodiesel blend of 20 percent biodiesel and the other on 100 percent (B100). No engine modifications or set-up changes were required, just a fuel filter change 5000 kilometres after switching to biodiesel. Before starting the trial they checked in with the various manufacturers of their fleet, but found most of them, except Scania, had standard policies discouraging biodiesel use. Undeterred, and encouraged by the extensive consultation they had done with Environ Fuels, A One began a carefully monitored pilot. After using biodiesel for some time, magnets were drawn over the trucks’ sumps to attract any metallic particles that might be suspended in the oil (indicating engine damage) and fuel lines and seals were regularly checked. No problems were encountered with either truck. In fact, a longstanding starting problem with one of the trucks suddenly vanished! Fuel consumption proved very similar to that of ordinary diesel, and drivers reported power and torque just a fraction lower than previously. During the pilot, the firm’s B100-fuelled truck was in the South Island during midwinter and was watched carefully for any issues with the fuel ‘gelling’ at low temperatures, but even after a snowy overnight stop in Dunedin, the vehicle started fine the next morning. After the successful pilot, all of AOne’s trucks began running on B20, and a 1000 litre fuel storage tank was installed on-site under a lease arrangement with Environ Fuels. A One has already observed that the biodiesel burns much more cleanly, and the fuel filters are staying cleaner much longer. Plans are now to convert the entire fleet to B100 with the key objective of providing more stability with fuel costs. B100 is also expected to cut the fleet’s oil usage considerably due to the fuel’s higher lubricity. Biodiesel and engines Virtually all diesel vehicles can use a five percent biodiesel blend (B5) without any engine or fuel system modifications. Higher blends, such as B20, can be used for most large commercial vehicles such as trucks and buses, provided a few simple checks and steps are followed. Some engine manufacturers also approve the use of 100 percent biodiesel. Fuel suppliers, vehicle distributors, fleet managers and engine manufacturers can provide information on the appropriate blend to use. Drivers can switch between using biodiesel blends and ordinary diesel at any time, including having a mix of both fuels in the tank at the same time. Biodiesel blends tend to ‘clean’ fuel systems, loosening dirt and old fuel deposits and carrying them through to the fuel filter. As a result, one or more fuel filter changes are required after switching to biodiesel, to remove the loosened engine grime. As with ordinary diesel, biodiesel can ‘gel’ in very cold areas if the vehicle is left standing for extended periods, e.g. overnight. Locally purchased fuel is formulated to suit the region’s colder temperatures, reducing the risk of this problem. Simply driving through cold areas with biodiesel in the tank is not a problem.
Q&M Vol.7 No.3 June-July 2010 |
Biodiesel NZ has already invested $20 million in production facilities including an rapeseed storage facility and a pressing plant in Rolleston near Christchurch, and another small biodiesel plant in Christchurch City. The company produces top quality biodiesel blends between B60 (blended with 40 percent mineral diesel) and B100 (or 100 percent). Customers using its top B100 product include Ocean Fisheries (using trawlers with modified motors), transport companies, and a couple of tourism operators operating diesel vehicles in environmentally sensitive areas of the South Island High Country. Future plans are to produce up to 70 million litres a year, however, a new biodiesel plant at Rolleston has been put on hold while fuel-sector prices remain comparatively low.
Another of Environ Fuels’ satisfied customers is A One Movers in Auckland who specialise in moving domestic and commercial fragile freight.