Implementing commercial scale biofuel in Queenstown

Beyond business as usual

BackgroundSep 09 – Mar 10• EECA funding of 30k for

establishment• Queenstown Sustainable

Business programme relationships have assisted

• Workshop• Working Party• Consortium structure• Tender Process• Selection of supplier & site• Fuel Flowing

Working Party

Queenstown Lakes Biodiesel Consortium

The Consortium is not for profit to establish the presence of biofuel and demonstrate commercial viability

The project has always seen biodiesel as one solution towards renewable mobility

Biodiesel in Queenstown timeline

1. Why ? Nov 2008

2. Workshop Oct 2009

3. Working party ongoing

4. Fuel flowing March 2010

1 year on

• 66 registered vehicles:– Toyota, Mitsubishi, Hino, Nissan, Isuzu, Ford,

Volvo, Land Rover, Mazda• 19 businesses:

– More than 50% are tourism activity operators• 85,000 litres of B20 pumped to date

– Saving 34 tonnes of CO2• 65 cafes/restaurants/hotels in QLD recycling

used cooking oil

Fuel Flow Mar 2010-Jan 2011

Motivation for business

Innovation

Speed to market

New markets

Talent wars

Productivity

Motivation

Brand image

Managing risks

Compliance

Supply security

Profit

Share price

Growth

Revenue

Customer care

Expense savings

Competition

Market share

Leadership

Governance

Why biodiesel?

Biodiesel; Our approach

Collaborating across boundaries

Creating Desired futuresSeeing Systems

From Senge (2009) The Necessary revolution

Renewable fuel is essential for tourism to thriveBiodiesel has a place

Imported oil will cost more, dependence

Biodiesel Workshop Oct 09•2hrs 40 attendees

•Put the risks/benefits on the table

•Lively debate - fast with few or slow with many?

•Elected a working party

•30 businesses said they would put a vehicle onto a consortium for pilot (use 1.5 million l per annum)

•Supported B20 (real change) ahead of B5 (why bother?) because of Queenstown’s brand

OUTCOMES

Working Party

Key decisions

• The future desired state is renewable

•B20 rather than B5 as a first step

•Site owned by Local Govt

•Getting a supply partner alligned to our thinking

Biodiesel Supply Partners

Saw the vision

Prepared to supply facility

Regional/national expansion potential

Partners

All partners essential to success

Otago Polytechnic Own and manage the consortium, seed funding

Local Govt (QLDC) Supply land, consenting and fencing, seed funding

Regional Tourism Organisation (DQ) seed funding , database

Chamber of Commerce database

Sponsors funding

ECCA seed funding, expertise Fuel Technologies Ltd contracted for expertise

Allied Petroleum Own facility, supply fuelBiodiesel NZ supply biodiesel

Sponsors

GOLD $1000

SILVER $650

BRONZE$450 SHOTOVER JET

CREEKSYDE HOLIDAY PARK

Sponsorship has meant the consortium levy dropped from 3c per litre to 1c per litre

NZ’s first biodiesel consortium

Official Opening March 8th 2010

Awards

Commended in:– Transport– Community– Renewable Energy

Media Exposure of Launch

• TV3, Radio: Radio NZ, all QT local stations• Press: National Business Review, NZ Herald,

Otago Daily Times, Southland Times, all QT local papers, Bay of Plenty Times, Rotorua Daily Post, Hawke’s Bay Today

• On-line: Scoop, Stuff, Travel Memo, World Energy, World Fuels, Face book

• 25 international websites ran the story

The Future

• Uncertain while the price of mineral diesel is under $2 a litre

• The project has always seen biodiesel as one solution towards renewable mobility

• The Consortium is not for profit to establish the presence of biofuel and demonstrate commercial viability