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Implementing commercial scale biofuel in Queenstown

Implementing commercial scale biofuel in Queenstown. Beyond business as usual. Background. Working Party. Sep 09 – Mar 10 EECA funding of 30k for establishment Queenstown Sustainable Business programme relationships have assisted Workshop Working Party Consortium structure

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Implementing commercial scale biofuel in Queenstown

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  1. Implementing commercial scale biofuel in Queenstown Beyond business as usual

  2. Background Working Party Sep 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

  3. 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

  4. Biodiesel in Queenstown timeline Why ? Nov 2008 Workshop Oct 2009 Working party ongoing Fuel flowing March 2010

  5. 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

  6. Fuel Flow Mar 2010-Jan 2011

  7. 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?

  8. Biodiesel; Our approach Creating Desired futures Seeing Systems Collaborating across boundaries Renewable fuel is essential for tourism to thrive Biodiesel has a place Imported oil will cost more, dependence From Senge (2009) The Necessary revolution

  9. Biodiesel Workshop Oct 09 • 2hrs 40 attendees • Put the risks/benefits on the table • Lively debate - fast with few or slow with many? OUTCOMES • 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

  10. 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

  11. Biodiesel Supply Partners • Saw the vision • Prepared to supply facility • Regional/national expansion potential

  12. Partners

  13. 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 fuel Biodiesel NZ supply biodiesel

  14. Sponsors GOLD $1000 CREEKSYDE HOLIDAY PARK SILVER $650 Sponsorship has meant the consortium levy dropped from 3c per litre to 1c per litre BRONZE $450 SHOTOVER JET

  15. NZ’s first biodiesel consortium

  16. Official Opening March 8th 2010

  17. Awards Commended in: • Transport • Community • Renewable Energy

  18. 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

  19. 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

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