The Bio-Energy Association of NZ is talking up the industry’s prospects with the Biofuel Bill being passed last week mandating a small proportion of transport fuels must be bio-fuels. Association CEO, Brian Cox, says the Bill will reduce NZ’s dependency on imported oil and lessen the cost of transport fuel. “We’re pleased Govt has recognised the important role bio-fuels play in reducing our reliance on the tyranny of the international oil market and fuel prices that are crippling our economy.” Cox says recent research shows NZ could provide all of its own renewable transport fuel by as early as 2040 and with the Bill now law potential investors will have the confidence to invest in crops, plants and infrastructure. He is also confident bio-fuel prices will drop in the long run as technology within the sector improves.

No Impact On Food Production. The Bill includes sustainability principles to ensure bio-fuels produced in NZ emit significantly less greenhouse gas than fossil fuels, don’t compete with food production and don’t reduce indigenous bio-diversity or adversely affect land with high conservation values. Says Cox, “Instead of leading to a replacement of food crops, as is a concern in some countries, NZ arable farmers will have the opportunity to rotate arable crops with profitable bio-energy crops. Energy crops can also improve soil management.” The big test now will be for the industry to match the ambitious statements made by Cox and to see how it reacts to any further significant fall in oil prices.

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