Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Grants to boost New Zealand biodiesel industry


Hon Gerry Brownlee
Minister of Energy and Resources

19 May 2009 Media Statement

Grants to boost New Zealand biodiesel industry


A new grants programme for biodiesel production will kickstart the biodiesel industry in New Zealand, Energy and Resources Minister Gerry Brownlee announced today.

“By supporting biodiesel production in New Zealand, we can help get a new industry up and running, which can provide jobs for New Zealanders, at the same time as helping to reduce their greenhouse gas emissions,” Mr Brownlee said.

As part of Budget 2009, $36 million will be allocated to the programme over three years. The grants will be available from July 1, 2009.

The grants will be available to domestic biodiesel producers selling their product for a range of end uses.

Some biodiesel is already produced in New Zealand from waste cooking oil, tallow (a by-product of meat processing) and oil seed rape. Present uses include vehicles, fishing fleets and boilers.

Gerry Brownlee said the initiative fulfilled the government’s pre-election promise of providing incentives for biodiesel producers, in recognition of the advantage that bioethanol already enjoys.

According to industry analysis commissioned by the Energy Efficiency and Conservation Authority, biodiesel produced in New Zealand is expected to result in reductions of greenhouse gas emissions of between 50 and 90 percent compared to ordinary diesel, will not be produced on land of special environmental value and will not compete with food production.

Transport will be one sector to benefit from greater availability of biodiesel as a consequence of this initiative. “Blends of up to 5 percent biodiesel in diesel are widely accepted by the motor industry worldwide as long as the biodiesel meets fuel quality requirements," he said.


Questions and answers

How will the funding be allocated over the three years?

The programme will provide grants of up to $9 million in the first year, up to $12 million in the second year, and up to $15 million in the third year, at a maximum rate of 42.5 cents per litre of biodiesel.

Is the grant available to biodiesel producers who want to export?

No, the grant is only available to domestic biodiesel producers selling to New Zealand consumers.

What quality standards must the biodiesel meet?

To qualify for a grant, the biodiesel must meet the government’s regulated fuel quality specifications that apply to all engine fuels.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

PM's Press Conference: Pike Re-Entry Agency

At today's post-cabinet press conference Prime Minister Jacinda Ardern was joined by Minister Responsible for Pike River Re-entry Andrew Little to announce plans for the new agency for re-entry of the mine.

The Pike River Recovery Agency, Te Kahui Whakamana Rua Tekau ma Iwa, will be officially established on 31 January 2018 and will work with the Pike River families with the intention of manned entry of the drift before March 2019. More>>

 

Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>

ALSO:

Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>

ALSO:

Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>

ALSO:

Train Free Thursday: Workers Strike To Defend Terms Of Employment

"They signed up to these conditions a year ago when they got the contract for Wellington's rail services. Now they're trying to increase profits by squeezing frontline workers." More>>

ALSO:

Seclusion: Ombudsman Emphasises Importance Of Monitoring

Disability Rights Commissioner Paula Tesoriero says that while there have been changes to the Education (Update) Amendment Act 2017 to prohibit the use of seclusion, the report is an important reminder of the importance of regular monitoring of schools. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election