Repeal of NZ biofuel law remains controversial

The New Zealand government is facing another challenge from one of its partners, with United Future political party leader and Revenue Minister Peter Dunne saying he will oppose the repeal of the law obliging oil companies to sell biofuel. “While National claims its repeal is due to concerns about environmental protection and world fuel shortages, it is about to do the very thing that will potentially bury a 100%-sustainable tallow-based biofuel industry right here in New Zealand,” he said. Tom McNicholl, managing director of Auckland-based Biodiesel Oils NZ, said he would mothball a nearly-built NZ$10 million (US$5.64 million) plant in Waikato that would have produced 60 million liters a year of tallow-based biodiesel, after the government confirmed it would scrap compulsory biofuel requirements. “There will not be enough sales of biodiesel to warrant the capital investment or even sustain running a plant that’s already built,” he said. Labor Party Parliament Member David Parker said the government was scrapping the requirement to score political points, at the cost of jobs and missing a chance to make New Zealand more economically independent. (December 13, 2008)