Argent Energy shelves plans for New Zealand

Government policy has resulted in leading U.K.biofuel producer Argent Energy to shelve plans in investing more than US$100 million in New Zealand. Managing Director of Argent Energy’s NZ subsidiary, Dickon Posnett, says New Zealand’s proposed legislation in the Biofuels Bill makes the playing field too uneven. “Ethanol gets a government-backed subsidy, through relief from excise duty, which amounts to NZ$0.42 (US$0.3) a liter. Oil companies are given incentives to import ethanol. This makes it uneconomical to invest in the domestic biodiesel plant we were proposing to build,” he said. Posnett further said that international investors are watching New Zealands policy development closely. “While the Europeans praise the Biofuel Bill in general, they are scratching their heads as to why New Zealand is the only country to regulate against its own domestic industry in favor of imports,” he said. On the other hand, the Automobile Association (AA) claims that engines in old cars, motorboats and lawnmowers are incompatible with ethanol-blended fuels. Biofuel retailers are denying this claim. Gull New Zealand General Manager Dave Bodger said, Gull’s E10 products had been on sale for nearly a year, with more than 20,000 fills sold each month, he said. We have not had anybody come to us with major issues.” AA Spokesman Mark Stockdale said there was no way to know what blends would be available at which stations, and the compatibility of an individual’s car would dictate where they should buy their fuel. (July 30/August 11, 2008)