Biofuels quality warning to consumers
22 February 2007
Government today issued a warning to consumers not to purchase biofuels from backyard producers.
Last week’s announcement of a Biofuels Sales Obligation to take effect in April 2008 means consumers will soon have the choice of biofuels at the pump – but in the meantime some backyard producers are cashing in on the demand for climate-friendly fuels.
Elizabeth Yeaman, Senior Adviser Renewable Energy at the Energy Efficiency and Conservation Authority (EECA), says it is unlikely that small scale producers will have the necessary safe-guards in place to ensure fuel quality, as these are costly to implement.
New Zealand already has a voluntary standard for biodiesel (NZS 7500), and a voluntary specification for bioethanol. Government will introduce comprehensive biofuel quality regulations prior to the commencement of the Biofuels Sales Obligation.
“Only biofuels that meet relevant quality standards will be able to be used to meet the Biofuels Sales Obligation,” said David Crawford, Group Manager – Environment, Ministry of Transport.
Ms Yeaman says “Backyard producers should be aware that consumers are being warned not to purchase biofuels that do not meet quality standards.
“EECA has developed a biofuels label to inform consumers, and only those who meet quality specifications will be issued the label. At this stage no companies have the label, although some are in the process of applying for it.
“The message to consumers is only buy biofuels if they have the EECA biofuels label displayed - biofuels that do not meet quality specifications may result in engine damage.”
“Until comprehensive biofuel quality regulations are enacted, both independent producers and established fuel retailers should display the EECA biofuels label to demonstrate to customers that they meet quality specifications.”
ENDS
See ‘The facts on backyard biofuels’ below:
Fact one: biofuels producers need to meet quality control regulations
The Biofuels Sales Obligation aims to encourage new companies to start biofuels production in New Zealand. However these need to be companies that not only have entreprenuerial skills, but also the relevant chemical engineering and quality control expertise, to ensure consumers can buy biofuel blends with the same confidence they currently do ordinary petrol or diesel.
Provided companies can demonstrate they meet the relevant quality control measures, the government is keen to see new entrants to the market, however the costs of quality control are likely to represent a major barrier to companies operating on a small scale.
It’s unlikely that any of the major oil companies will be producing biofuels but instead will be looking to purchase their fuels from new companies that can meet fuel quality requirements.
Modern vehicles are designed for high quality, highly specified fuels. While biofuels are excellent fuels when made according to specifications and standards, biofuels that do not meet quality specifications may result in engine damage.
Fuel quality is a vital issue. The driving public need to know that any biofuel blends are going to work just as well in their vehicles as normal petrol or diesel. You wouldn’t dream of buying ordinary petrol or diesel from a backyard operator, so why would you do it with biofuels?
Fact two: vegetable oil is not the answer
Overseas studies and local experience show there is a risk of damage to your engine when using straight vegetable oil, including when the engine has been modified with a conversion kit. While it is a renewable source of fuel, there are better renewable fuels used internationally such as biodiesel and bioethanol, which are the main fuels that will be used to meet the Biofuels Sales Obligation.
For these reasons, and also because of supply issues, vegetable oil is not likely to become widely used as a vehicle fuel. Once large scale biodiesel production begins in New Zealand, this will create a local demand for all the used vegetable oil. This means it is unlikely to be cost effective for small scale backyard operators to purchase used vegetable oil.
Fact three: Road User Charges still apply
The same charges apply for all diesel engine vehicles no matter what fuel they’re running on.
Fact four: Only buy biofuels that have the EECA biofuels label
Until the biofuel quality regulations are enacted (this may be done before the introduction of the Biofuels Sales Obligation in April next year), consumers should only purchase biofuels from sellers that have the EECA biofuels label, to be certain the biofuel meets quality standards. Because no one has the label at this stage, the Government is asking consumers to be patient, and to wait until the fuel quality legislation has been enacted.
There are people currently selling backyard biofuels, however unless the seller has the EECA biofuels label, consumers are taking the risk that the biofuel may cause damage to their vehicle engines.
ENDS
For further information contact:
Anna Warren, Marketing and Communications Advisor, EECA, 04 470 2229