Fuel made from fats heading this way

Bio-diesel brewed from Australian animal and vegetable fats could be flowing through New Zealand pumps by the end of this year, as Gull Petroleum moves to become the first energy company to sell the cleaner-burning fuel.

Geoff Gillott, country manager of Gull Petroleum in New Zealand, said bio-diesel went on sale this week in its Perth stations.

Gull's B20 fuel blend has 20 per cent bio-diesel, with the rest made up of its premium low-sulphur diesel. Any reduction in carbon dioxide emissions depended on the proportion of bio-diesel to standard diesel.

The Australian company part-owns a bio-diesel plant in Queensland that makes it from animal fats (tallow) and vegetable fats such as palm oil and soy.

Mr Gillott said the bio-diesel in Perth was selling for 3c a litre cheaper than the standard diesel and he did not expect it to be sold for any price higher than existing diesel.

The blend had "significantly reduced levels of sulphur", which meant it was better for the environment and burned more cleanly.

No date for the introduction of bio-diesel to the New Zealand market had been given, but Mr Gillott hoped it would be by the end of the year.

Bio-diesel is made from renewable resources and produced from a reaction of vegetable oil or animal fat mixed with alcohol. It emits 92 per cent less greenhouse gas than petroleum diesel.