New Zealand to subsidise biodiesel sales
New Zealand will spend as much as NZ$36 million (€16 million) in subsidies for biodiesel over the next three years in an attempt to encourage investments by improving the fuel’s competitiveness against petrol and ethanol.
A grant of as much as NZ$0.42 per litre will be available from 1 July on sales of domestically produced biodiesel that meets government standards.
The payment matches an excise advantage locally made ethanol has over regular-grade petrol.
Argent Energy, operator of the largest biodiesel plant in the UK, last year abandoned a NZ$100 million project to make the fuel in New Zealand citing the tax disadvantage against ethanol.
In February, government-owned Biodiesel New Zealand deferred work on a 15 million litre per year plant, citing the tax issue and weak prices.
The new grants are expected to help establish the industry while also reducing transport emissions.
Funds available for fuel subsidies will rise from NZ$9 million this year to NZ$15 million in the year ending June 2012.
A grant of as much as NZ$0.42 per litre will be available from 1 July on sales of domestically produced biodiesel that meets government standards.
The payment matches an excise advantage locally made ethanol has over regular-grade petrol.
Argent Energy, operator of the largest biodiesel plant in the UK, last year abandoned a NZ$100 million project to make the fuel in New Zealand citing the tax disadvantage against ethanol.
In February, government-owned Biodiesel New Zealand deferred work on a 15 million litre per year plant, citing the tax issue and weak prices.
The new grants are expected to help establish the industry while also reducing transport emissions.
Funds available for fuel subsidies will rise from NZ$9 million this year to NZ$15 million in the year ending June 2012.
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