Biofuel in New Zealand

Content sourced from Wikipedia, licensed under CC BY-SA 3.0.

Biofuel in New Zealand is fuel for cars made from biomass, such as forestry waste, agricultural by‑products, and organic waste. Today biofuels are only a small part of the country’s energy, but they are seen as a way to cut emissions, improve fuel security, and support regional industries.

Most activity has been small blends of bioethanol and biodiesel. What gets produced depends on feedstock availability, government rules, and global fuel prices. Government programs have aimed to encourage investment and give certainty to producers.

New Zealand’s potential is linked to its forestry sector and new waste‑to‑fuel technologies. Studies point to opportunities for larger use, but challenges include high capital costs, the need for new infrastructure, and competition for biomass.

Key points over the years:

- In 2007, Ecodiesel planned a biodiesel plant in Onehunga, but the project was not completed.
- In 2010, Gull began selling a 5% biodiesel blend, Diesel Max, at a few Gull stations. It was partly sourced locally, and there were early concerns about engine compatibility for older vehicles.
- In 2014, Gull switched to imported Australian biodiesel because of local supply issues.
- In 2016, Z Energy opened a biodiesel plant in Wiri called Te Kora Hou.
- In 2020, Gull discontinued their biodiesel brand and Z Energy shut down their biodiesel factory, citing cost, scale, and supply‑chain problems. The plant remained closed in 2022.

Bioethanol efforts also included Gull Force 10, a 10% ethanol blend launched in 2007 from dairy by‑products, and a 10% bioethanol “Regular Plus” blend in 2008 using whey‑based ethanol at some stations, with price aims to undercut regular fuel.

Other notes:

- Plans for a tallow‑based biodiesel plant in Tauranga did not go ahead, due to high costs and competition from cheaper sugar‑based ethanol imports from Brazil.
- Firewood remains used for home heating, and wood pellets are growing in popularity in areas with pollution.

Policy history:

- A Biofuel Bill introduced in 2007 aimed to require a growing share of biofuels in petrol and diesel, reaching 2.5% after five years.
- In 2008, the Parliamentary Commissioner for the Environment advised against proceeding, citing import risks, potential harms to New Zealand’s “clean green” image, and other concerns.
- After the National Party took power, parts of the bill were repealed, removing the mandatory biofuel requirement.
- The Green Party proposed a Sustainable Biofuels Bill in 2009 to ensure biofuels sold from 2010 onward are sustainable.
- In 2009–2010, $36 million was set aside in grants to support local biofuel production, limited to producers selling locally and meeting engine fuel standards.