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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