Z Energy, a New Zealand fuel supplier, is in the process of building a plant that will convert tallow, an inedible waste product of meat, into biodiesel.

The project is currently under construction in Wiri, Auckland, and is expected to be completed in 2015.

The facility will generate 20 million litres per year of biodiesel. The company sells about 2.5 billion litres of fuel every year.

Z Energy is using a lab at the University of Auckland to develop the fuel. According to the company, biodiesel’s carbon footprint is less than one-tenth of petroleum diesel.

Z Energy awarded Fitzroy Engineering with an engineering, procurement, construction and management (EPCM) contract for the project. According to Fitzroy, the design was more than 70% complete with all major components ordered last November. Fitzroy expects commissioning to occur in October or November 2015.

Z Energy is a fuel supplier to retail customers as well as large commercial customers like airlines, trucking companies, mines, shipping companies and vehicle fleet operators. It owns and manages more than 200 service stations, about 90 truck stops and several other New Zealand fuel outfits.