Implementing commercial scale biofuel in Queenstown Beyond business as usual
Background 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 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 Workshop Oct 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 futures Seeing Systems From Senge (2009) The Necessary revolution Renewable fuel is essential for tourism to thrive Biodiesel 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 fuel Biodiesel 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 8 th 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