Biodiesel Grants Scheme off to a strong start

A grants scheme set up to encourage biodiesel production in New Zealand is off to a strong start, with five companies set to take part, Energy and Resources Minister Gerry Brownlee announced today.

“Five biodiesel production companies have signed or been offered contracts to participate in the Biodiesel Grants Scheme.”

“ For a fledgling industry, I am impressed that we already have this number of companies ready to take part and sell the quantities of biodiesel required to qualify under the scheme,” Mr Brownlee said.

The companies (and their locations) are: Biodiesel Oils NZ (Tamaki), Ecodiesel (Onehunga), NZ Ester Fuels (Tuakau, South Auckland), Environ Fuels (Te Kuiti), and Biodiesel New Zealand (Christchurch).

“The companies are using a range of sustainable feedstocks to produce biodiesel, such as tallow, used cooking oil and rapeseed grown as a break crop,” the Minister said.

“The scheme will help increase the fuel choices available for New Zealand consumers and businesses.”

“Biodiesel blends can be used for a range of uses, including shipping and industrial use, as well as in vehicles.” Mr Brownlee said.

Participating companies are required to report sales of biodiesel on a monthly basis, in order to be awarded the grant. The biodiesel must be made in New Zealand, and meet the Engine Fuel Specifications Regulations.

Background:

Under the scheme, which started on 1 July 2009, a grant of up to 42.5 cents per litre for biodiesel (or biodiesel content of a biodiesel blend) is available to biodiesel producers.

The grant is paid monthly in arrears to New Zealand producers who sell 10,000 or more litres of biodiesel each month.

Funding of $36 million over three years is set aside for the Biodiesel Grants Scheme.

The Engine Fuel Specification Regulations limit the retail sale of biodiesel to a blend of 5% biodiesel in mineral diesel, which can be used in all diesel engines.

More information: www.eeca.govt.nz/biodiesel-grants