Government introduces biofuels legislation

The government will introduce the Biofuels Bill into Parliament, which will bring into force the biofuels sales obligation.

"We're introducing biofuels so that our transport sector can be more environmentally friendly and reduce its greenhouse gas emissions, while also starting to wean ourselves off our dependence on oil," Energy Minister David Parker said.

Mandatory biofuel use will begin in New Zealand next year, and will comprise 3.4% of fuel company sales by 2012.

Biofuels may be sourced from New Zealand, or from overseas. New Zealand sources are likely to include initially tallow (animal fats) and, in the future, wood-waste, syngas derived from biomass, or algae grown on sewage ponds.

The Minister said the legislation included a clause that enabled environmental sustainability standards to be developed.

"The government wants to ensure biofuels used in New Zealand come from sustainable sources," Parker said.

"We want to take care not to create a new environmental problem as we fix another. There are legitimate concerns that some biofuel production causes the destruction of rainforests, causing greenhouse gas emissions and loss of biodiversity, or competes unduly with food production."