Bid to make fuel from trees

As fuel prices continue to rise, a Taupo company is attempting to produce a new fuel source from trees.

The Lake Taupo Development Company wants to set up a bio-refinery in the area to produce ethanol from wood products. If all goes to plan, the country could have a new fuel source capable of replacing oil by 2012.

Company chief executive Barry Delany said it was the perfect time to look at fuel alternatives.

He said many countries around the world were looking at ways to produce alternative fuels and he expected it to be a big industry in the future.

The company's plan includes growing plantations of a special type of willow tree which can be harvested every three years. Ethanol, lignin and xyoe will be extracted from the wood using new technology.

Ethanol can be used as a fuel replacement, while lignin can be turned into a biodegradable form of plastic and xyoe used as a type of sugar.

The company has been researching the idea for the past couple of years and Mr Delany said the current rise in petrol and oil prices made their business plan stronger than ever.

This year the company plans to develop a nursery with 8000 seedlings and to start raising the $5 million needed to build a pilot bio-refinery.

- DAILY POST (ROTORUA)