August 21, 2007

New Zealand's LanzaFuels to drive up domestic corn planting
 

New Zealand-based bio-fuel producer LanzaFuels has announced that its planned corn-based ethanol plant in the Waikato region will require 38,000 hectares of the crop during the first year of operation.

In response, some domestic corn growers have expressed concerns over finding sufficient suitable land to meet the new requirements on top of existing demand.

According to LanzaFuels' project manager Howard Moore, the company's product will be used in a petrol-ethanol blend that is expected to power cars in New Zealand by 2010.

Andrea Pearson, research coordinator for the Foundation for Arable Research, said New Zealand's corn area currently totals 60,000 hectares, of which silage and corn grain account for 60 percent and 40 percent respectively.

With LanzaFuels' additional requirement, Pearson expects total domestic corn area to rise by more than 50 percent to 98,000 hectares. Of the 38,000 hectares required for bio-fuel production, an equivalent of 16,000 hectares is expected to return to the dairy industry as feed in the form of distillers dried grains with solubles (DDGS).

Moore said LanzaFuels plans to start corn-based ethanol production by mid-2010.

Waikato is considered a good location for the new plant due to proximity to cornfields, existing grain driers, and local dairy farmers who are receptive to using DDGS. There is also a large fuel market in the neighbouring Auckland region.