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,
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.
“High level biodiesel blends and one hundred per cent biodiesel are appropriate for niche applications such as eco tourism,” Mr Brownlee 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.”
The scheme, which began on July 1, 2009, has a funding pool of $12m per year for three years, yet only $208,000 was taken up last year across six registered biodiesel producers.
Mr Brownlee expects the new criteria to increase production and sales of biodiesel in New Zealand.
The change in eligibility will take effect from 1 July 2010.
