Government urged to retain support for biofuels

The Bioenergy Association of New Zealand (BANZ) says that it is urging the Government to renew its commitment to supporting biofuels as a way of providing the nation’s transport fleet with alternative energy supplies and maintaining New Zealand’s adherence to a low carbon environment.
BANZ says it is concerned at reports that the Government may not continue its commitment to biofuels.
Kevin Snowden, Convener of the BANZ Liquid Biofuels Interest Group, says that the current Government support for biofuels (which includes biodiesel and bioethanol) assists the growing New Zealand biofuels manufacturing industry make biofuels available to vehicle users.
“Providing biofuel is a very important measure at this point in time as it has encouraged the commercial adoption of environmentally responsible fuels by the likes of Gull Petroleum. Since 2007 biofuels have been adopted as a great alternative by tens of thousands of Kiwi motorists as a way to reduce greenhouse gas emissions. The end of the support for biofuels would mean the death of biofuels and New Zealand should not allow this to happen,” says Snowden. “It would also send a significant signal to the whole renewable energy community that the Government is not serious about initiatives that support its climate change and other environmental measures”.
Brian Cox, Executive Officer of BANZ says “Any move to drop the support for biofuels would be a retrograde step that would expose New Zealand as playing lip service to its obligations under the Kyoto and Copenhagen initiatives. The emerging biofuels sector could be supplying 30% of New Zealand’s transport fuels by 2040 but that will be put back significantly as investors will have been given the message that New Zealand is not interested. Biofuels are made from New Zealand’s natural resources and their production provide a significant economic stimulus which can lead to a $6billion industry within a short period of time. This is only achievable if investors and fuel users have confidence in their quality and availability. Today’s production of biofuel leads to providing that confidence.
“New Zealand has had a real chance with the adoption of biofuels to make an impact on reducing its greenhouse gas emissions especially in the transport fleet and so this needs to be retained and if anything supported even more,” says Cox.
Cox also says that every Government around the world supports its own biofuels industry particularly those that use locally sourced, sustainable and reliable natural resources that can reduce dependence on imported fuels. In New Zealand there have been a significant number of jobs created and hundreds more could be created if there was a continuing support from the Government that provided investor confidence.
“In this world of rising fuel prices and global warming, biofuels have come of age and we all recognise that as an alternative energy supply they make sense in every way – financially, environmentally and politically. New Zealand now has the basis of a biofuels industry producing supplies from by-products of the dairy industry (whey to ethanol) as well as used cooking oil and New Zealand grown canola. Biofuel is a very viable, low cost and carbon neutral alternative that reduces New Zealand’s dependence on imported fuel stocks so the Government should be doing everything it can to support the industry’s development.
“The current support scheme for biodiesel expires on 30 June this year and an excise tax exemption for ethanol is due for review this year as well. It is unacceptable that industry is left in limbo not knowing the outcome of these schemes. Our members are unable to make investment decisions or execute forward contracts.
“Because of this on-going uncertainty sales of biofuels are already beginning to slip. BANZ is aware of a number of fleet owners across the board who are keen to make a commitment to liquid biofuels but are unable to because of the uncertainty surrounding the future of the industry in New Zealand.”