The Solid Energy-owned company that makes biodiesel from canola expects to double production, buoyed by the work of a pair of Otago Polytechnic-backed southern fuel consortiums.
Biodiesel New Zealand's Christchurch plant has doubled Biogold production to 2 million litres in the past six months and expects to double it again in the next year, general manager Andrew Simcock said.
The work of the Queenstown Biodiesel Consortium, and the potential of the just-established consortium in Dunedin, boded well for continued growth in the biofuel market.
"Customer demand is growing, and initiatives like those help that demand grow. We're going through an exciting phase for biofuels in New Zealand," Mr Simcock said.
Otago Polytechnic Centre for Sustainable Practice manager and co-ordinator of the consortiums Steve Henry said the Queenstown fuel depot - the first of its kind in the country when it opened in March - pumped 16,000 litres of biodiesel in September.
The new and so-far business-dominated Dunedin consortium expected to supply more than a million litres of 20% Biogold blend a year to commercial and household consumers, Mr Henry said.
Biodiesel New Zealand supplies the Queenstown consortium, and will supply the Dunedin consortium, with its 20% blend biodiesel, through distributor Allied Petroleum.
Mr Simcock said the consortiums would play an important part in encouraging biodiesel use and helping develop his company's business.
Consortium members' vehicles were registered and their performance using the fuel was tracked to reinforce confidence in the product.
The product was made using used canola oil collected from restaurants around New Zealand, and from canola crops grown by mainly South Island farmers.
Biodiesel New Zealand had more than doubled its farm suppliers from about 20 to more than 50 in the past year. Several thousand hectares of crops will be harvested from Christmas.
There was plenty of room for growth in used canola oil supply: canola oil sales were tracking close to biodiesel fuel sales, Mr Simcock said.
Centre for Sustainable Practice sustainable tourism adviser Sharon Schindler said at least 66 cafes and restaurants in the Queenstown Lakes district recycled their cooking oil for Biogold.
