New Zealand looks at scrapping biofuels subsidies due to low sales

In New Zealand, the national government said it may scrap a $36 million biofuels subsidy program because, with only $700,000 paid out in tax credits, it is concerned that biofuels are uneconomic, according to Hekia Parata, the New Zealand energy minister.

However, Gull New Zealand manager, Dave Bodger, said that there was public interest in biofuels, noting 250,000 liters sold in December. The government previously had moved away from a biofuels mandate and instead offered tax credits on biofuels that lower the price of the fuels.

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