Transport

The New Zealand parliament has passed a biofuel bill designed to stimulate sustainable alternative transport fuels.

The legislation introduces a biofuels obligation so that oil companies will have to make up 0.5% of their sales with biofuels this year. The target will rise 0.5% per year to 2.5% in 2012.

The bill also outlines sustainability criteria for the biofuels, which must emit “significantly” less greenhouse gases over their lifecycle than fossil fuels, must not have a negative impact on food production or adversely affect local species or conservation areas.

“This legislation allows for an increasing proportion of New Zealand’s transport fuel to be produced locally, from by-products of the dairy or beef industry, and in the future from wood and grasses grown on marginal land, or from algae from sewage ponds,” says Energy Minister David Parker.

“The introduction of biofuels is a forward-looking move which will start to free New Zealand from the tyranny of the international oil market, and may even reduce the cost of fuel to consumers,” he adds.

For further information:
newzealand.govt.nz/