New Zealand sets rules for biofuels

The government of New Zealand wants fuel companies to have a 3.4% biofuel content in petrol and diesel by 2012. “This initial target is considered sufficient to encourage the uptake of biodiesel and the development of infrastructure for ethanol distribution,” Prime Minister Helen Clark told the Parliament in February. From April 2008, the obligation will fall on on firms that first purchase or obtain petrol or diesel from the New Zealand Refining Company, or import petrol or diesel directly, which include BP, Caltex, Gull, Mobil and Shell. In the first two years, companies are expected to be allowed to roll over their obligation to the next year, with the addition of a penalty of 5% for the total amount of biofuels that should have been sold in the obligation year. (February 13, 2007)