Auckland buses could soon be powered by fuel made from animal fat, a parliamentary committee was told today.
Energy Efficiency and Conservation Authority (EECA) chief executive Heather Staley told Parliament's local government and environment committee that powering vehicles by bio-diesel would reduce carbon dioxide emissions.
Most diesel vehicles currently use organic diesel.
"InNew Zealand, one of the main sources for bio-diesel would be from the meat processing industry as a by-product, basically rendering down tallow into bio-diesel," Ms Staley said.
"Bio-diesel is basically code for any form of fat or oil, so one of the other avenues that is being explored around bio-diesel is recycling used cooking oil, or cooking fats."
Oil company BP was looking at ways to promote bio-diesel in and around Auckland, and was investigating using it to power buses, she said.
Ms Staley told the committee of a construction company which worked in and around Circular Quay, in the heart of Sydney, and used bio-diesel in all its heavy machinery.
"He's (the company owner) really clear that he could never afford to have a visible diesel spill in that harbour area in Sydney and he understands that by using bio-diesel, if he ever does have a spill it turns into fishfood, literally," she said.
"The other thing is it doesn't form a slick and it drops."
The EECA had suggested tourist operators in Fiordland and the Bay of Islands use the product as they were based in sensitive marine environments.
"They may well be willing to pay a price premium to know that they run less around fuel spills," Ms Staley said.
Bio-diesel was not currently widely used because of price. However, decreased consumption of animal fat worldwide meant the price was falling and the price difference between bio-diesel and organic diesel was falling, she said.