Used cooking oil slashes hot water power bill by massive 92%

A Kaikoura backpackers has slashed a massive 92% off the cost of its hot water bill by re-using cooking oil from local takeaways and restaurants to fire its boiler. The Lazy Shag backpackers made the move in order to do its bit for climate change as well as save money, says the hostel owner, David Stanford.

"It is part of operating a business in Kaikoura - our customers expect that we lessen our impact on the environment. And this is certainly one to way to achieve this."

A grant from the Energy Efficiency and Conservation Authority (EECA) helped get the project off the ground.

By installing a clean-burning multi-oil boiler the hostel can use left-over cooking oil from local restaurants for heating rooms and the hot water for showers. At only $10 for a 200-litre drum, it's cheap to get hold of, and there's plenty of it around: the Lazy Shag has around five years worth of cooking oil stockpiled already.

The results have been remarkable, Mr Stanford says. The amount of electricity used to heat water decreased from around 52,000 kilowatt hours per year before the installation, to only 3,000 kilowatt hours per year afterwards - a saving of 49,000 kilowatt hours and many thousands of dollars per year.

The electricity savings also equate to big reductions in greenhouse gasses. The drop in carbon dioxide emissions for the backpackers has been estimated at over 12 tonnes per year.

The Energy Efficiency and Conservation Authority (EECA) helped the project go ahead by providing a capital grant for some of the cost.

EECA's chief executive, Mike Underhill, says EECA's business programme enables New Zealand companies to become more energy efficient and competitive, using more renewable energy and emitting less carbon dioxide.

He said EECA is putting particular focus on the tourism industry, along with farms, horticulture and the forestry sector, because of their importance to the economy and the challenges these industries face in managing energy use and emissions.

"We know from the leadership that has already been shown in the tourism sector, that sustainability is a winner, both for the bottom line and in terms of attracting more visitors to New Zealand, Mr Underhill said.

"Managing energy use and using renewable energy are two key ways a business can move towards more sustainable practices and save on their energy bills at the same time."

For more information on how EECA can assist your business save energy, visit the EECA business website.