Biodiesel grants scheme

The Biodiesel Grants Scheme aims to kickstart the biodiesel production industry in New Zealand. 

It is designed to:

  • Provide support for the growing New Zealand biodiesel manufacturing industry as an economic development measure
  • Offer comparable treatment with bioethanol for biodiesel
  • Diversify the New Zealand fuel market; and
  • Encourage the adoption of environmentally responsible fuels which reduce greenhouse gas emissions.

Under the scheme, which started on 1 July 2009, a grant of up to 42.5 cents per litre for biodiesel or biodiesel content of a biodiesel blend will be available to biodiesel producers. The grant will be payable monthly in arrears to producers whose product sales amount to, or are in excess of 10,000 litres, B100 content, (100% biodiesel) per month.

Criteria

For the purposes of the scheme, biodiesel will only be eligible for the grant if it meets all of the following criteria:

  • Regardless on end use, is biodiesel (B100) that meets the requirements of Schedule 3 of the Engine Fuel Specifications Regulations 2008, and is intended for use as a fuel in compression ignition internal combustion engines
  • Is manufactured in New Zealand - that is the transesterification process occurs in New Zealand
  • Is regardless of end use first sold by the producer for the purpose of blending by the receiver with diesel in a blend up to B20 or is first sold in a blend with diesel such that the final fuel sold to end-users is a blend up to B20 and meets the requirements of the Engine Fuel Specifications Regulations 2008
  • Is claimed in the month when it is first sold rather than at time of manufacture
  • Is not exported
  • Is only eligible to be claimed under the scheme if first sold in a month for which the grant is available/payable and the Producer's total sales for the month amount to or exceed 10,000 litres B100 content.

Press releases

Biodiesel grants scheme off to a strong start (Minister of Energy and Resources Hon Gerry Brownlee, 29 July 2009)

Budget 2009: Biodiesel boost (Minister of Energy and Resources Hon Gerry Brownlee, 19 May 2009)

More information

More information about the scheme (including terminology, criteria, exclusions, requirements, reporting and timelines) can be viewed in the Biodiesel grants scheme description document.

Further information:

Further questions about the scheme can also be directed to biofuels@eeca.govt.nz or by telephone 0800 358 676.

From the Resource Centre

Related information available: