Energy policy
Sir, — Technically New Zealand could produce all its liquid fuel from Pinus radiata. Economically, at present-day prices it is a different story. Three chemical engineers have been working here on this, and on other processes, under a contract with the Energy Research and Development Committee. They find that 500,000 ha is required to supply the fuel used by cars, and this is less than half the fuel used by sea, air, rail, etc. They also find that the profitable (15 per cent on capital after tax over 15 years), ex-plant price of ethanol from wood is more than 30 cents a litre. This should be compared with exrefinery petrol at 11 cents a litre. Excise tax, local body tax, retailers’ margin, etc., need to be added. Thus the retail price might be about 50 cents a litre. There are other, less expensive routes to transport fuel from biomass, but all are more expensive than the petroleum alternative at present day prices. — Yours, etc., W. B. EARL. Senior Lecturer in
Chemical Engineering, University of Canterbury. April 29. 1978. (This correspondence is now closed.—Editor]
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Press, 1 May 1978, Page 16
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184Energy policy Press, 1 May 1978, Page 16
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