15 Dec 2011

Aviation biofuel agreement

7:54 am on 15 December 2011

Air New Zealand has signed a memorandum of understanding with Licella to explore the development and commercialisation of a process to create aviation biofuel.

Licella has developed a process, using a catalytic hydro thermal reactor, which converts woody materials and other bio-mass into a high quality bio-crude oil.

Licella chief executive Steve Rogers says the joint venture will hopefully lead to the construction of a large-scale second generation bio-crude oil production plant in New Zealand or Australia.

Air New Zealand and New Zealand Trade & Enterprise have been working closely with Licella and Norske Skog for more than two years.