Biofuel sales are on the decline and companies are in limbo due to a lack of Government commitment to renew current schemes, says Bioenergy Association of
New Zealand (BANZ) executive officer Brian Cox.
The association is urging the Government to renew its pledge to biofuels as providing alternative energy supplies to the country’s transport fleet.
While current support for biofuels - including biodiesel and bioethanol - helps the industry make the fuels available to vehicle users, there is rising concern as to what will happen after the support scheme expireson June 30.
“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,” says Cox
“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.”
With an excise tax exemption for ethanol also due for review this year, convener of the BANZ Liquid Biofuels Interest Group, Kevin Snowden is also disappointed there has been no clear direction going forward, despite biofuels known ability to help reduce greenhouse gas emissions.
“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”.
A significant number of jobs have been created from biofuel production and Cox says hundreds more could be generated if there was continued support which would provide investor confidence.
“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.”
re-using cooking oil is great and whey. but converting food production fields into fuel production is not always a good idea.after all it usually requires use of fuels to maitain,plant,harvest,and transport raw materials from plants grown for “fuel”