Between 1100ha and 1200ha in the Omarama area has been planted in oilseed rape which will be turned into biodiesel by Christchurch-based Biodiesel New Zealand Ltd.
The company has leased 2000ha for 10 years from an Omarama farmer, intending to use it to grow oilseed rape in rotation with cereal crops.
The planting will produce between 1400 and 1800 litres a hectare of vegetable oil, the equivalent of up to 210,000 litres of 100% (B100) biodiesel.
The biodiesel will be blended with petroleum diesel down to 5% (B5).
Biodiesel is already in widespread use, although it is not available to the public as a 100% fuel.
Biodiesel New Zealand general manager Paul Quinn said his company could not meet demand as more vehicle operators realised the benefits of using the fuel and because its price, particularly in the last 12 months, had become competitive with petroleum diesel, as a result of escalating oil prices.
Mr Quinn said the company started sowing the Omarama crop at the end of April and start of May, but he did not want to reveal exactly where it was because of problems with people coming on to the property.
"We were a little late with our planting. We wanted it in at the end of March, but it did not go in until the end of April and beginning of May," he said.
Depending on the season, the crop would be harvested from mid-December to the end of January.
Before then, the flowering crop would be a spectacular sight.
About 1200ha had been planted in oilseed rape, with the rest sown in rotational cereal crops.
Apart from the oil produced, the crop will also yield about 2.5 tonnes of oilseed rape cake, which is used as stock feed.
The processed biodiesel would be sold as B100 (100% biodiesel) and would also be available to customers to blend down to 5% with petroleum diesel.
The leased land was not irrigated.
"The land which came up is in a rain shadow, and one of the advantages of oilseed rape is it does not need large amounts of water.
"We looked at the annual rainfall over the past 10 years and it was within acceptable boundaries," he said.
One of the issues facing biodiesel producers was replacing food crops with crops to produce fuel.
Mr Quinn said the Omarama land was previously used for sheep and beef production.
"We are converting it into arable [land], planting cereal crops as well. If anything, we are increasing the food crop opportunity.
"We are taking land that was not used for a food crop and converting it into a food crop area," he said.
"Rather than taking food off the table, we are helping arable farmers stay as arable farmers, rather than becoming dairy farmers," he said.
Biodiesel New Zealand has other oilseed rape crops throughout the South Island.
The Omarama crop represents about 25% of this year's total for the company - next year it would be about 5% as a big boost in production was planned.
Between 5000ha and 6000ha of South Island land was planted in oilseed rape this year.
Within three years, the company hoped to have up to 30,000ha in rotation around New Zealand.
To cope with that level of production, Biodiesel New Zealand was building a processing plant at Rolleston, near Christchurch.
It would be able to produce 70 million litres of biodiesel a year.
Oil would be extracted from the seed, then processed into biodiesel.
At present, it produces about 1.5 million litres a year, mainly recycled vegetable oils.
"We can't keep up with demand. On average, we turn away 20 potential commercial customers a week," he said.
While the company's focus was on oilseed rape for biodiesel, it was in partnership with researchers looking at alternative crops.
"Oilseed rape will always have a place because it makes a very good fuel with very good lubrication, something lacking in modern petroleum diesel fuels with the removal of sulphur," he said.
"But we are constantly looking at what else is out there and is viable for New Zealand."
The company dealt only with bulk commercial customers, not private vehicle owners.
Next year, blended biodiesel would be available at oil companies' pumps.
Mr Quinn said the argument in favour of biodiesel rested on security of fuel supply - reducing New Zealand's dependence on imported fuel - as well as sustainability issues.
He did not believe the production of ethanol from grain for use with petrol was particularly sustainable.
"That takes ethanol out of the equation in New Zealand and biodiesel is something we can actually produce in serious volumes that will reduce dependence on imported product and support our local economy," Mr Quinn said.
Fuel for thought
Using Biodiesel
• In older vehicles in poor condition, dirt and deposits can be loosened. Flush tank and fuel system, then replace fuel filter after a few tanks.
• Be alert to fuel system leaks in vehicles dating back earlier than 1987.
• Store in a cool dark place in closed containers.
• Use within six months of purchase.
• Still take care in extremely cold conditions that fuel does not wax.
Advantages
• Biodiesel and ordinary diesel are compatible.
• Manufactured from vegetable oils or animal fats.
• Reduces vehicle emissions.
• Superior lubricity, particularly for the injector pump.
• Has a naturally high cetane (octane) rating.
• A renewable fuel source.
• Can be used without any modifications.
• Survives colder temperatures better.
Cost
• At $1.80 to $1.90 a litre, competitive with petroleum diesel at $1.92 a litre.
