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Biodiesel grants scheme to be extended - Brownlee

Contributor:
Fuseworks Media
Fuseworks Media
Gerry Brownlee
Gerry Brownlee

Wellington, June 5 NZPA - The Government's biodiesel grants scheme is being extended, Energy Minister Gerry Brownlee said today.

It was introduced in July last year to kick start biodiesel production in New Zealand.

Under the present criteria, the biodiesel sold must be used in a blend with ordinary diesel of no more than 20 percent biodiesel.

That is being extended to blends up to and including 100 percent biodiesel.

Mr Brownlee said it would provide an incentive for businesses and individuals who were willing and able to use the higher level blends.

The change in the scheme was expected to increase production and sales of biodiesel.

"High level biodiesel blends and 100 percent biodiesel are appropriate for niche applications such as eco tourism," he said.

"Several businesses have indicated they are keen to use higher level blends and unblended fuel to reduce their greenhouse gas emissions as much as possible, and we don't want to discourage them."

Biofuels are a renewable transport fuel, and the higher the blend the greater the environmental benefit.

Six biodiesel producers are registered to take part in the grants scheme. Most of the biodiesel that has received the grants to date is made from used cooking oil and oilseed.

The scheme allows for grants of up to 42.5 cents per litre to biodiesel producers who sell 10,000 or more litres of eligible biodiesel each month.

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