A biodiesel lobby group has responded warmly to news of relaxed criteria for the government’s biodiesel grants scheme - but one major producer is less than impressed.

Energy and Resources Minister Gerry Brownlee announced yesterday that the scheme will be extended to include sales of biodiesel blends higher than 20%.

The government has taken action to increase uptake of the biodiesel grants scheme.

The scheme, designed to kick start domestic biodiesel production, allows for grants of up to 42.5 cents per litre to biodiesel producers – but, under present criteria, biodiesel sold must be produced for use in internal combustion engines as a 20% blend with regular diesel.

Energy and Resources Minister Gerry Brownlee announced today that criteria would be extended to include sales of biodiesel blends higher than 20 percent.