Kaika Energy, from Kaikorai Valley College, was a stand-out performer for the Otago Young Enterprise Scheme (Yes), winning the regional excellence in business award last night.
Yes regional co-ordinator Paul Allen said the motivated pupils stood out for their forward thinking in turning waste into energy.
The pupils established Kaika Energy, a biotechnology company which turned food waste into biofuel and fertiliser, which could one day power the school's heating system.
The initiative was inspired by research which shows an estimated $900 million worth of food (120,000 tonnes) was wasted annually by New Zealand households.
Most of it was dumped in landfills, where it produced damaging greenhouse gases which were released into the atmosphere.
The company hoped to change that statistic with a self-sustaining machine called an Urban Digestor, which transformed food waste into biofuel and liquid fertiliser.
The Urban Digestor went through a 21-day process, and to continue the process it needed 30kg-60kg of food waste put into it every day.
Kaika Energy was also a finalist in the New Zealand Innovators Awards last night. Mr Allen said being named as a finalist was ''hugely significant'' for both Kaika and the Otago regional awards.
Kaika received national publicity for its project.
The Lion Foundation Yes scheme was a learning experience for senior secondary school pupils, who formed a company, became directors and developed products and services which they marketed and sold - keeping any profit they made - within a single school year.
In Otago, six high schools were represented by 19 companies and 87 pupils.
Winners announced in front of about 80 people attending the function were: Sustainable business award: Kaika Energy; best marketing plan: Viewpix, Queen's High School; best sales performance: Viewpix; best annual review: S(he), Columba College; top performing pupil Eva Hankinson, Otago Girls' High School; best financial performance: Kaika Energy.
Kaika Energy will represent the region competing for the top awards in Wellington on December 9.
Dunedin listed company Scott Technology received the sustained innovation excellence award at the New Zealand Innovators awards.
The company won for its lamb forequarter cut automation system.
The judges' notes said Scott Technology was widely recognised as a world-class innovator of advanced automation systems for meant processing, mining and the superconductor industries.
